Ranking System

I am trying to make a ranking system based off of a point system. For example, if the current P/E ratio is below 30 then the stock would be given one point. Is this a possibility?

Mostly.

Use Boolean ranking nodes. Within each, nest a logical statement.

The end result will return ranks, but the rank-order will not change versus a pure-point system.

I think in order to get back points, you’d have to use the sceener. In a screen, you’d put each logical statement in a SetVar/ShowVar statement. After those you would take the sum of all logical statements (because TRUE is 1 and FALSE is 0).

Thanks. Do you think you could provide me with some sort of example for the screener method?

You can use the summation in ranking. Something like this:
https://www.portfolio123.com/app/ranking-system/316029

That’s a good idea, David. Thanks.

The general way to do scoring is to use a quirk of system: If an inequality or true/false function is true, it will return a 1; if it’s false, it will return a 0.

If you want to use it in the ranking tool, then the way to do that is with custom formulas:

Name: 1
Function: MktCap>2000

Name: 2
Function: ROE%TTM>5

Name: score
Function: $1+$2

You would then use $score in a function node in a ranking system.

By the way, scoring systems and ranking systems are kind of uneasy partners. The problem is that there are generally, in scoring systems, only a few possible discrete values. Piotroski’s system, for example, has 10 discrete possible values (0-9). Everything that’s ranked the same is going to receive the same ranking value, the maximum value to which they’d otherwise be entitled.

As a result of that, scoring systems usually do better in screener or portfolio rules, where you can just do:

PiotFScore=9

or

$score=2