Hi all!!!
Just a doubt.
I have a rule in a ranking system, this one:
LoopStdDev(“randd(CTR,TTM)/randd(CTR+1,TTM)”,12), the lower the better.
The porpuse is to rank higher the companies that invest more in R&D in the last 3 years.
Then I place this order in the “Buy rules”:
LoopSum(“randD(CTR,ANN)”,3)/3>0
And the porpuse with this one is to be sure there is at list a minimum growth in the investment in the last 3 years.
Then my question is… Is is this right?
Thanks!!!
James - the LoopStdDev function will rank smoothness of growth, but not strength. So it doesn’t do what you are asking. You want to use a standard growth function for this such as: GR%3Y(“RandD”)
higher is better
SteveA
Great!!!
I didn’t know I can use this function that way.
But, what it’s the correct way to write it in the “buy rules”?
A- GR%3Y(“RandD”)
or
B-GR%3Y(“RandD”)>0
And, if I place GR%3Y(“RandD”) in the ranking system, then there is no need to add anything to the “buy rules”?
You are confusing your desire for smoothness which definitely requires either a buy rule or other factors with a simple growth factor that does not require additional support. If GR%3Y(“RandD”) is your ranking factor then you don’t need a buy rule, assuming there are a reasonable number of stocks in the stock universe.
Hope this helps,
SteveA
Ok, get it. Thanks a lot Steve!!