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Screen your way to profits with new screener

Empirical Finance has launched a simple stock screener for general usage (read, free).  And it’s pretty nice.

In its announcement of the launch of Empirical Finance Data, the company said the site is intended to accomplish a few goals

  • Demystify quantitative long/short.
  • In our mind, the only reason many fund managers can pitch overpriced products to investors, is due to a serious information asymmetry problem. We are here to shakes things up a bit.
  • Currently, the only way to access quantitative long/short equity is via expensive private placement vehicles (e.g., hedge funds), expensive mutual funds, and expensive managed accounts. The key theme across all these vehicles is the following theme, “EXPENSIVE.”
  • Allow “hands-on” investors an opportunity to build straight forward quantitative portfolios using high-quality data via our basic screening tools.

That’s cool for me — that’s what Tradestreaming is all about. Finding the tools, data and research to make more accurate — profitable — investment decisions.  This dovetails nicely into the category we call Stock Screening 2.0 — using technology and proven investment techniques to quantify the investment process.

The screener is super simple and currently sizes stocks up in 4 ways

  1. Joel Greeblatt’s Magic Formula
  2. Piotroski’s F-score
  3. Novy-Marx’s Profit and Value Score
  4. Cooper, Gulen and Schill’s Asset Growth strategy

Users can search for all rankings of an individual stock or screen for the highest ranking stocks in a particular screen according to market cap.  Check it out.

Additional Resources

Empirical Finance Data Services (Empirical Finance Blog)

What is Tradestreaming: Screening 2.0 (Tradestreaming)

Advanced Resources

John Reese’s The Guru Investor: How to beat the market using history’s best investment strategies (Tradestreaming Bookshelf) provides great research for investors interested in creating guru strategies that recreate the types of investments history’s best investors made (guys like Lynch, Buffett, Graham, etc.)

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What is Tradestreaming: Screening 2.0

Top investment gurus like Benjamin Graham, Warren Buffett, Peter Lynch, and Joel Greenblatt didn’t only help investors enjoy huge market-beating returns in their funds.  They also left behind the keys to the (investing) castle: the methodologies they applied in their market-trouncing performance.  They’ve written books, complete with formulas and strategies, that propelled them to the top of their games and gains.  Tradestreaming aims to recreate these strategies as we pave our own way to outperformance.

Because a small number of expert investors wrote extensively about their investing techniques, we can now create complicated computer programs to reenact their strategies and apply them to today’s stock markets.  Screening 2.0 is all about using smart technology to bring history’s best investors back to life.

Technology-driven investing

Stock screens have been around for decades.  Using screens, we can filter through thousands of investment candidates on the prowl for the ideal investment.  Old screens merely searched databases of stocks using specific criteria (i.e. all large cap stocks with a p/e less than 20 and a growth rate over 7%). Unfortunately, for most investors, these screens fail — searching for specific stocks tells us nothing about the success of such a strategy.

Screening 2.0, lead by analysis and money management firm, Validea, allows us to recreate history’s best investment strategies, computerize them, and then look for stocks that guru investors like Ken Fisher and Marty Zweig would have purchased themselves.  Screening 2.0 is the marriage of search technologies and artificial intelligence with quantitative investing.

More Resources

Make sure you check out the Tradestreaming for the Internet’s best stock screening resources.

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