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rjm77me
rjm77me vip
P&P Score: 99.94   Points: 616.65   Accuracy: 77.28%   Average Pick Score: 0.89   Annual Return: 32.85% (94.05% since 7/16/09)  

rjm77me's Blog : Zacks Rank1 and rank 5 - Comparison in down market

Date September 4, 2011    Comments Comments (7)    Rate this post Recommend This Post (236)   
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This is follow up of my blog


http://www.peopleandpicks.com/blog/rjm77me/3644545/


I created a new scan using same parameters - Except one has rank1 and the other has rank 5 stocks


I will track it for next 30 days for forward testing with current market conditions

Tags : POT   LNN   BG   MON   CMI   PII   PCLN   LINC   NOR   AGII   VMC   CYMI  

7 Comment(s):

Author JohntheWizard     Date September 5, 2011 01:37 Abuse this post Report Abuse
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rjm77me,
It appears to me that most of the gains in ZR#1 stocks are made by the micro caps, penny stocks, and stocks that are barely traded. The rules of this game appear to take out the first two. Requirements on average daily traded capital depend on your own money management. When you use these three requirements on ZR#1 stocks, the 200 remaining ones (80%-90%) have been lagging the S&P500 since July 2008, for the full past three years.

It also appears to me that ZR#5 stocks outperform ZR#1 stocks in times of high volatility. Wouldn’t you think that during such times all fundamental bets are off?
Author rjm77me     Date September 8, 2011 08:21 Abuse this post Report Abuse
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I have not been watching micro cap stocls - so can not say for sure
I normally look at scans - then transfer the tickers to a charting software.
I letsoftware to tell me if a stock is a buy or sell or just watch.
A stock which is a strong buy may still stay a buy or rank 1 after 30% hair cut - no one in zacks system pushes a change button to rank 3 or to rank 5

The system works to a point and back testing can be misleading. To prove any system the best bet is do forward testing for the duration of one's trading style. Over 6 month cycle one can start trusting a scan or system.
Sure there will news driven ups and downs
Author rjm77me     Date September 8, 2011 08:25  Edited: September 8, 2011 by rjm77me Abuse this post Report Abuse
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I created a hand picked list on July 2010 = after 278 days it has 268 winners and 91 loosers with average 34.7% gain.
That is forward testing over 287 trading days
One can increase gains by trade management - like using 10% loss or even 20% loss. Out of 91 losers 35 lost more than 20% the biggest loss was 78%
40 stocks had more than 70% gains
I left the list alone just for reference
Author JohntheWizard     Date September 22, 2011 09:59 Abuse this post Report Abuse
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That hand picked list should have given you here roughly 360*30 is over 10,000 points. as the S&P500 rose only 5% during that time. P&P is an excellent tool for forward testing (when it does its job right).

Interesting stuff. Thanks for sharing that.
Author rjm77me     Date September 26, 2011 19:26 Abuse this post Report Abuse
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JW,
I use my computers and software for doing testing and prefer to keep it that way.
Zaks Rank 1 lost 3.5% in 25 days and ZAKS rank 5 lost 2% in same time frame
Author rjm77me     Date October 12, 2011 08:57 Abuse this post Report Abuse
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Zacks rank one lost 10.1% based on list generated on AUG 3 2011 and 49 days being on list - overall market lost 5.8% in same time frame. stocks in list=228
Author rjm77me     Date October 12, 2011 09:05 Abuse this post Report Abuse
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ZACKs rank 5 lost 0.5% while market gained 3% from list creation date, 46 days on list
number of stocks = 204
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