Sept. 16, 2019

The following HTML file deals with stock selection problems associated with automated processes. In particular, often, the mere fact of selecting stocks on some economic rationale is sufficient to reduce the immense set of potential portfolios to a unique and totally deterministic one. This is that we look backward or forward in time.

For example, selecting the top 100 stocks by market capitalization will deliver the same set of stocks to everyone using it. And then, only the portfolio's trading methods and procedures will differentiate the final outcome. Because of the selection process itself, those trading methods might become variations on the same basic theme. Nonetheless, it will remain the task of the trading methods themselves to show outperformance over and above market averages.

Click the HTML file.

Related article:

Structure of a Stock Trading Strategy

Sept. 16, 2019, © Guy R. Fleury. All rights reserved.