Here we are in mid-September, and only 2 of the 9 screens we’re tracking have managed to beat the market’s 27% return over the past 12 months. One of them - VG Horse - has delivered an astounding 1-year return of 102%. The other one - Naz Cons - has an annualized return of 26% over the past 10 years, which is double that of the S&P 500.
Question - My notes (which may be outdated or wrong) indicate that the Naz_Cons screen is intended as a quarterly screen with a 10% Stop-Loss on the stocks, along with an intention to sell if a stock dips below it’s 50 day SMA.
Are these returns based on those assumptions or rather on a straight monthly hold?
Yes, Naz_Cons was backtested as a quarterly screen, whereas the others are monthly. However, none of the curated screens are using stop losses or moving averages. You just buy the picks at the start of the period, hold until the next period, then sell what falls off the screen and buy any picks that are new.
I have a separate simulation strategy (Simulation 1), but that has nothing to do with these curated screens. My simulation strategy does use stop losses and the 50dma to identify when to sell stocks that are in Stage 2 uptrends. Hope this helps.