Screener Backtest Question

Research
1

I made a simple Small Cap Value screen that I backtested and got nice results… but really high turnover.
I think that the problem is that the backtest says:

  1. is the stock cheap? If Yes, buy, otherwise sell it

But what I want it to say is:

  1. is there stocks that are cheap that we don’t already own? If yes, buy them
  2. are there stocks that we own that are now overvalued? if yes, sell them

In other words, is it possible to create buy parameters and then hold the stock until a new set of sell parameters are met?

2

Of course you can do that.
Differentiate in the Simulation the Buy rules from the Sell rules.

3

Zahi,

The Simulations are far more flexible than the Screener, and therefor, far more powerful. If you are careful in how you use it. The ability to also specify sell rules in Sims instead of only buy rules makes the Sims a step up and a more powerful tool.

4

Check out Help->Library->Tutorials

5

Thx, dumb question. My bad.