Intelligent Stock Picks for Independent Investors

Learn How Our Unique Select10 Trading Strategy – Focused on High Liquidity S&P 500 Stocks – Has Proven to Consistently Outperform the Stock Market Every Year Since Dec 2008…

Profitable Trade Ideas Built on Value + Growth Fundamentals…

Accomplished investors know the key data points that can have a direct bearing on the valuation (and stock price) of a company – what to look for when dissecting the quarterly profit/loss, cash flow, and balance sheet statements. For instance, fundamental metrics such as gross profit margin growth, pure operating margin growth, free cash flow yield, debt to capital ratio, operating return on capital, etc., are some of the varying components that provide valuable insight into management competence, and sustainability of performance, within a business…

The challenge is in knowing how to bring together these initially fragmentary core metrics into cohesive, fully integrated formulae, which combine logic and reason into identifying successful businesses, which provide potential deep-value and growth trading ideas…

  • Total Rtn – Dec 2008 to April 2018: +1,971.83%
  • S&P 500 Index – Same Period: +199.34%
Let Us Do The Math…

Identifying newly unfolding trade ideas, and putting capital to work, is what we do every day…

Starting from a clean sheet every four weeks, we initially run two independent stock screens, focusing on S&P 500 stocks…

The first stock screen is designed to capture value stocks with strong free cash flow to enterprise value (FCF/EV) yields, backed by positive growth in gross profit margins, plus positive growth in pure operating margins, amongst other credentials.

The second (independent) stock screen, seeks out businesses which are delivering strong cash flow margin growth, supported by a healthy cash flow to shareholders equity (or ‘book value’) ratio, and minimum free cash flow to capital yield, amongst other screen rules.

This initial screening process, applied to all five hundred S&P stocks, objectively narrows down our universe (and focus) to ‘qualifying’ companies within each of the two distinctive stock screens.

Qualifying companies are then further ranked into a sort-order which places the top five trading ideas at the top, for each one of the two screens… Qualifying stocks from Screen One are ranked by strongest ‘free cash flow to enterprise value (FCF/EV) ratio’, from highest to lowest. Seperately, qualifying companies from the Screen Two are ranked by strongest ‘recent FCF/capital yield to historical average FCF/capital ratio’, from highest to lowest.

Effectively, With the top five ranked stocks from Screen One, plus the top five ranked stocks from Screen Two, the trading strategy invests in the combined ten stocks (the ‘Select10’), from the two screens. The entire process is repeated (and stock screens refreshed) every four weeks.

A Trading Plan You Can Emulate…

Every four weeks, subscribers receive all the information necessary to emulate the Select10 strategy, should they wish to do so. The top 8 stocks from each screen are published, allowing members to trade the top 5 from each screen, thus emulating the Select10 strategy-portfolio. Alternatively, members can look at specific stock trading ideas within the lists to consider in their own trades/portfolios.

The report is published every four weeks, on a Sunday, ready for entering/exiting new/old positions in the next market open.

Based on exhaustive testing, backed by performance data, trades are ideally held for the full four weeks (the ‘holding period’) without interruption. This means, once trades are entered, positions are not touched until the next rebalance four weeks later. This is a reasonable holding period which we have found in our analysis and experience, to provide a good balance between capturing quality value and growth trade ideas/opportunities, without over-trading.

Why Liquidity is Important…

As we are focusing specifically on the S&P 500 universe, we are effectively trading only the most liquid stocks. This enables us to share both screen results and the Select10 stock picks with our limited subscriber base, without conflict of interest…

Liquidity plays a critical role in allowing us (and our members) to enter and exit trades with ease, and without competing with each other. Put another way, the stock price in any high-volume S&P 500 company is not likely shoot up on a Monday morning because every member is trying to purchase shares simultaneously, as can be the case with low-liquidity/low-volume stocks, such as small/micro cap stocks, and penny stocks…

As a quick example, popular S&P stocks like Boeing Co (BA) and Micron Technology Inc (MU), traded an average dollar volume of $1.89 Billion and $2.12 Billion worth of shares respectively, each day, in the past 10 days (at the time of writing)…

This level of healthy dollar volume allows for significant liquidity, market efficiency and ease of entering/exiting trades, with tight bid/ask spreads (difference between buy/sell prices), as well as absorbing multiple buy and sell orders at the same time.

Smarter Trades

Discover Trade Ideas Based on Robust Fundamentals and Strong Cash Flow Dynamics

Proven Performance

Fully Documented, Checkable 10 Year Trade-by-Trade Performance Data Since 2008

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Focus On Liquid Stocks

Confident Entry/Exit + Hedging Demands 'Liquidity' - why we Focus 100% on S&P-500 Stocks

Highest Standards

All Research and Performance Data Backed by Stringent, Institutional-Core Quality Data

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