The StockRanks Jump Effect: what 5,902 rank jumps reveal about catching re-ratings early
Ed Croft presents Stockopedia’s biggest research study yet - what really happens when a stock leaps into the StockRank top decile
It's the question Stockopedia members ask more than any other: "A stock I follow just jumped 20 points on the StockRanks - does that mean anything?"
This year, our research team answered it properly. We went back through our entire point-in-time StockRank archive - every LSE-listed share, every week since 2013 - and measured what happened after all 5,902 occasions a stock jumped into the top StockRank buckets in a single week. Companies that later went bust stayed in the data. Every simulated portfolio paid full dealing costs. We even re-ran the whole study on the US market to check we weren't fooling ourselves.
What we found is a genuine, measurable edge - stocks jumping 10-40 points into the top decile went on to beat the stocks already there by 5-8 percentage points a year* - and it distils into a rule simple enough to write on a sticky note.
What you will discover
Why a rank jump is usually a results day in disguise - and why the market takes six to twelve months to fully digest what the StockRanks score in a week.
Buy the leap, not the creep - why 10-40 point jumps carry real information, while small drifts over a threshold are noise and 40-point "teleports" are lottery tickets.
The 90/80 Rule - the upgrade to the old 90/70 rule: buy the jump into 90+, sell on a weekly close below 80, and why letting the rank decide your exit beat every fixed holding period we tested.
Where the edge lives - and why Americans can't have it - the study's most strategic finding: the effect concentrates in neglected UK small caps, the one corner of the market where private investors still hold the advantage.
The case studies - Jet2's extraordinary ten-signal staircase to a ten-bagger, Rolls-Royce's 27-point jump the week its recovery began, and the cautionary tales: the stock on both our all-time winners' and losers' lists, and why the 90/80 Rule never owned Carillion.
Plus, a live Q&A with Ed. Bring your hardest questions on the study, the rule or the markets, and ask them on the night.
