That FFTY info Sekiyo posted tells me all I need to know. Horrible performance. I'll look elsewhere to try and find value rather than CANSLIM.
CANSLIM stocks based on score, if, how much do they outperform riskadjusted ?
- Thread starter TrAndy2022
- Start date
It tells you only that FFTY is not being managed in accordance with CAN SLIM as it is taught in How to Make Money in Stocks. I certainly wouldn't invest in that particular mutual fund.
But it says nothing at all as to the benefits and disadvantages of using the CAN SLIM system for one's own personal investment portfolio.
The problem with a mutual fund or ETF is that they have to be diversified and in the market.
Using Canslim as a filter gives you stocks that have the probability of success.
It’s funny this came up this week. I’ve been thinking about doing a paper money experiment. Using the IBD 50 list. It uses the CANSLIM methodology , both fundamental and some technical (RS). I’m going to try to sweat it up in the next few days. Buying the top 5 or top 10 in the IBD 50, checking it for changes daily, when a stock drops out of the top 5 or 10 whatever I decide, it gets replaced.
Maybe add, when IBD Big Picture, says Market in Uptrend, 100% of that paper money invested, when Big Picture is “Market under Pressure” 50% invested (same stocks just sell half of each), when Big Picture is “Market in orrection” 100% cash.
but I may not use that last half, because it has a tendency to create whipsaws. Besides which, using the IBD 50, what I’m looking for is relative performance.
Maybe add, when IBD Big Picture, says Market in Uptrend, 100% of that paper money invested, when Big Picture is “Market under Pressure” 50% invested (same stocks just sell half of each), when Big Picture is “Market in orrection” 100% cash.
but I may not use that last half, because it has a tendency to create whipsaws. Besides which, using the IBD 50, what I’m looking for is relative performance.
I agree that FFTY is not a valid test of the CANSLIM methodology. You just can’t manage a fund , even an ETF to the exact strategy, the flexibility is just not available to the find manager. I don’t know the details, but I’m guessing they make changes in the ETF every month or every quarter.
AAII has a CAN SLIM strategy it created based on the book. It's done well over the years with a 7000% return since 2000. Basically buy their picks at the beginning of the month. Sell at the end of the month and buy the new list. The downside is that sometimes the list is too small. (which may be a sign that you shouldn't be in the market). All the rules are provided in the Stock Investor Pro application. I verified it by writing an app that tracked the performance of the stocks each month since 2000.
Here is the link AAII
Here is the link AAII
Thanks, this is interesting. right now it shows “0” stocks coming up in the CANSLIM screen. I’m guessing that’s more a function of having to be a member/logged in, than market conditions.
Keep in mind that this isn't how CAN SLIM is intended to be applied. CAN SLIM is Techno-fundamentalist, similar to Nicolas Darvas. Fundamentals and strength relative to the S&P 500 get a stock onto the list. But timing is everything! You need to buy stocks coming out of bases, not simply and randomly buying a stock just because it happens to have the highest composite reading of 50 other stocks.
Arguably the best CAN SLIM chart right now is AEHR, which cleared a $19.53 buy point this week. It debuts on the IBD 50 this week at #48.
If you are going to use CAN SLIM, why not go straight to the source, at least for an initial watchlist?
Stock Lists - IBD 50 | Investor's Business Daily (investors.com)