We recently added a new tool to Earnings-Reminder that we’re calling the idea generator. The concept behind it is to leverage our database of screen results, apply an algorithm, and filter down the resulting ideas for our members to consider for further investigation. These are not buy or sell recommendations, rather they’re ideas that could be used as starting point for your own analysis.
We currently consider the idea generator to be a beta feature that we’re working on, and we’re tracking ideas going back to mid-August. As you can see were exposing the price when added, as well as the most recent closing price, and given that the formulas are static to this point… you can skim through the results and get a sense of performance.
Using some back of envelope calculations (which members can export and analyze themselves), we’re showing a raw win rate of 62%, with raw performance in-line with the returns of the S&P 500 at 4.40% measured over the same time-frame. So it’s an apples-to-apples comparison. Keep in mind that no extra intelligence has been applied here… we’re not trading a particular strategy or filtering out trades that may have hit “would-be” stop-losses/trade-to targets, or considered draw downs. It’s just a simple calculation of the return since it was featured. So some members who are up 60% on JP since it was first highlighted on 8/21, may have exited the trade before now.
Moving forward, we anticipate making changes to the algorithm, and may apply some degree of filtering so that measurements are more meaningful. For now, we think the way we’re tracking idea performance is both straightforward, and easy to understand for the time-frame we’re working in. The idea generator is currently available to both members, as well as registered (free) users.
