I really like the Quality Rank, Value Rank, StockRank™ etc, but is there anyway to see them historically in a chart or graph? This way we can see how the company evolves over time base on those rankings.
You can get a stock rank graph for an individual stock from the stock report. Other than comparing the previous day stock rank with todays, I haven’t found another way to search for stocks that have improved/reduced their rank over any longer.
hope that helps
You can see the Stockranks but not the breakdown of Q, V and M. You can also look at prints for Stockreports, this will give you a print for each month but some are missing.
Thanks, I been looking at the graph for a while and only now discover the bottom chart is the Stock Rank ranking,
I was wondering if there is any strategy out there based on this ranking, for example, a steady increase in ranking over a time period indicates signal to buy or deteriorating rating indicate signal to sell etc
Because I see the ranking is sometimes very closely correlated to the change in stock price itself, so it appears to be a good leading indicator, or is the ranking is actually a lacking indicator that is just correlated with the price change? I guess what I'm trying to say is that is the StockRank calculated based on underlying fundamental or does it kinda of cheat and just change with the stock prices?
I don’t know how the algo works, but I expect value and momentum are likely to be directly impacted by sp movement.
I.e. sp goes up —> momentum rank goes up, value rank goes down (if all else remains constant).
And vice versa.
I don't use the Stockranks figure itself as a means for entry or exit of a trade, my preferred method being chart signals(there's so much information in charts if you know how to read it). I do use it for stock selection(fundamentals) however and its great for that, the Stockranks or each of components(Q,V,M), individually or combined.
For a very basic strategy, you may want to consider entry when the Stockranks becomes bullish at 75+(crosses up into the green bar) and exit when it crosses down out of the green bar(below 75). To avoid false crossovers, it may be best to not buy as soon as it crossovers but to wait a short period to see if it stays in or out of the bullish zone(green bar).
There are variations for these figures. NAPS portfolio I believe uses 65+ as entry and 50- as exit. But, an exit of less than 50 would result in a large drawdown, which might be ok for some, but not for me; I'm risk adverse and coudn't stomach a loss greater than 10 percent.
Feel free to play around with these figures to see if it works for you: it will depend on the kind of trader you are and your risk tolerance. As I said, I don't use these for timing of trades myself, but I think this strategy is more useful as a part of a wider strategy, instead of just in isolation. There are thousands of ways to trade, and many ways to win, but I believe one's strategies should suit the person and not the other way round.
Also, check out the Learn->ratio glossary section on the left hand menu to find out more about how Stockranks is calculated as well as a wealth of other useful ratios. Don't forget to check out Ed Croft's tutorial videos in the "Learn" section too.
“There are variations for these figures. NAPS portfolio I believe uses 65+ as entry and 50- as exit. But, an exit of less than 50 would result in a large drawdown, which might be ok for some, but not for me; I'm risk adverse and coudn't stomach a loss greater than 10 percent.”
I don’t know where you got that from but it’s not correct, maybe you are confusing NAPS with the Investment Club?
There is no selling on NAPS, stocks can go down to 0, they are held for 1 year.
I think there is some evidence that if SR falls then the share price falls afterwards, I wish I had heeded that with stocks such as Avon Protection (LON:AVON) and Boohoo (LON:BOO), but share price can fall then the SR falls afterwards. Some members use a minimum M score to trigger a sell, say if Momentum score falls below 70. The only issue with that is sometimes there are glitches in the system, Q scores were incorrect for several days because the F score was missing on around about 20% of stocks. So if there is a big fall I would investigate before selling.
But on NAPS there are few big fallers. NAPS is selected on the top QM and VM stocks in each sector.
