CANSLIM stocks based on score, if, how much do they outperform riskadjusted ? There is MarketSmith Investor website for a small monthly fee. There is also a composite score. I just wonder whenevery you take a (rolling) portfolio of only composite score 99 stocks based on marketsmith ranking, which is based on CANSLIM. How much return would you get ? How much volaility you have (in comparison to S&P500 for example) ? Anyone checked this or has an idea here ? Marketsmith do not track any statistics here, no indexes on whatsoever of their statistics they provide, which makes me suspicious that there is probably no value at all. Also those CANSLIM ETFs failed to meet market performance of S&P500 too. So I would be interested if anyhere here tracked them based on MarketSmith (Composite or other) scores, can say something about the performance. Because I do not can get some past stored data here from them, so it would take me many months before I can come to a conclusion here, if there is some alpha here or not.
CANSLIM stocks based on score, if, how much do they outperform riskadjusted ?
- Thread starter TrAndy2022
- Start date
I know those ETFs, but the score based on Composite ranking in their marketsmith website might be totally different or not ?
That is exactly the question if 99 Comp rating makes the difference as this is their best rating they can give.
Only equal weight as position sizing is used for the beginning. And I am asking for an ETF or Index created of only 99 Comp ratings. There is a come and go on this high rating. So it is also kind of fundamental momentum ranking. I would like to know that performance.
%%
SOUNDS like a good average;
small caps tend to outperform, going UP\ +worse than SPY going down.
Same way with QQQ compared to SPY.
CAN SLIM is still helpful........
IBD founder was , come to find out ,much better/ in many ways better + more excellent than any average.
I don't believe that COMP rating alone is sufficient to make the difference as to whether a stock is able to get the institutional sponshorship necessary to make it a big market winner. It is a fundamental tool. O'Neil's system combines fundamentals and technicals.
"He really had a great way of blending quantitative work with human intuition and observation," said William O'Neil + Co. CEO Steven Birch of the legendary investor's unique ability to find winning stocks. "His brilliance was in his narrow focus."
William O’Neil: Who Exactly Is The Legendary Investor, IBD Founder And CAN SLIM Creator? | Investor's Business Daily (investors.com)
In the early 1960s, O'Neil furthered his study of what made stocks successful. He zeroed in on both technical and fundamental factors.
"Bill really merged the two because he saw value to both," said Justin Nielsen, market research director at IBD. "He looked at the fundamental analysis as something that was essential for picking good companies. But he looked at the technical analysis as something that allowed the right timing to get into those stocks."
The article does mention that early in his career, when O'Neil himself managed his firms mutual funds, they became, at least for a while, the top performing funds available at the time. The fund manager is likely far more important than the fundamental data.