P123 Step-By-Step
Designing Ranking Systems (Chapter 15)
When it comes to designing ranking systems, it is not possible to supply an exact recipe that will always assure success. But we can provide guidance that will help you recognize and constructively address all the important choices that need to be made. Besides doing that, we also supply some checklists and factor catalogs that can help you organize your efforts and avoid information overload.
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P123 Step-By-Step
Building More Sophisticated Ranking Systems (Chapter 14)
Thus far, the ranking system we built for demonstration purposes has been simple: a single investment theme expressed through four basic factors. However, Portfolio123's ranking platform is able to accommodate considerable complexity. The extent to which you take advantage of that is a matter of personal philosophy (many prefer simplicity). But either way, it's worthwhile to learn three simple techniques that would give you the ability to go full out. Even if you decide not to go to the max, you'll find yourself comfortably able to handle the wide range of in-between solutions.
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P123 Step-By-Step
Measuring Ranking System Performance (Chapter 13)
We've already seen how easy it is to assess the merits of a screen through backtesting, turning the clock back to see how it would have performed had it been used in the past. Not surprisingly, we can also conduct similar tests on ranking systems. The most sophisticated assessment tools will come later, in the material on simulation. But the ranking system interface contains Performance testing capabilities that can quickly provide a strong sense of how good a job your system would have done in the past in separating market winners and losers.
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What's Working
A Change-Of-Pace Growth Strategy
Growth investing is often seen as dicey at times when markets struggle. But this time around, things have been seemed upside down in terms of what works and what doesn't. Indeed, we see some of that in the growth arena, where it is possible to develop a successful strategy by focusing on a big picture, as opposed to using the sort of here-and-now approaches that are typically preferred.
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