..STOP PRESS..2020 Portfolio up +10.6% compared to the FTSE All-Share down -18.8%..STOP 

I am a subscriber to Stockopedia with a Mechanical Trading Strategy that is achieving great returns.  In 2019 the ME Way investing in the FTSE250 produced +32.9% compared to the FTSE All-Share +18.2% and so far in 2020 to end of September +10.6% compared to the FTSE All-Share down -18.8%.

I wanted to develop a model that could buy and sell according to a screen based criteria; consistently apply the same criteria time after time with no emotion, full discipline and back tested to prove model.  This led me to develop model after model after model until I reached the ME Way.  A simple and successful Mechanical Trading Strategy.  

The most famous Mechanical Trading Strategy is probably Michal O'Higgins best selling investment classic Beating the Dow.  The logic is simple; markets over-react to bad news and the aim is to exploit the gap between reality and the markets distorted view.  The ME Strategy is very similar in the opposite manner; markets under-react to good news and the aim is to exploit the gap between reality and the markets distorted view. Not 'Dogs of the Dow', but 'Stars of the FTSE'.


'ME' goes against the efficient market hypothesis in a Momentum and Earnings led way.

  • M is for Momentum. Winners keep winning; great companies keep on growing and outperforming the market. Money is made by buying shares at high prices and selling at even higher prices.
  • E is for Earnings.  The number one factor in the short and medium term that drives a share price forward. A PEG Slater helps ensure that the earnings/growth is established and consistent.


The search method is 5 simple steps.

  • Step 1.  Momentum.  Strong momentum that is established with positive twelve months relative strength.  Twelve months is a key driver.  One month can just be a  short term one-off blip. Three months provides reassurance but is still relatively short term.  Twelve months the momentum is established.  Winners must keep winning. (RS 1y greater than 0).
  • Step 2.  Earnings.  Highest earnings forecasts for next 12 months for growth companies (PEG Slater greater than 0), (EPS Gwth % Rolling 1y greater than 0).
  • Step 3.  Comfort.  Pays a dividend so not all cash is being used to generate earnings growth. (DPS greater than 0).
  • Step 4.  Large…

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