We have created an updated set of portfolios that are based on some of Stock Rover’s most popular screeners. You can import any of the portfolios that interest you into your Stock Rover account via the Stock Rover Investors Library. This will allow you to see each of the stocks that passed the associated screener and track their performance.
The portfolios will also be used to start a test of the performance of the portfolios relative to each other as we go forward in time. This in turn will give us an idea of which screeners are performing well in the current market environment, as well as the ones that are performing poorly. Note this is the second such test of the screeners. The first test, still running, was started in July of 2022. You can read about that test in our blog post Real World Screener Performance.
The methodology I used was to run 13 separate popular Stock Rover screeners on January 1st, 2023. Each screener generated its own unique list of passing tickers. The passing tickers were in turn used to generate 13 separate portfolios, each based on a specific screener.
Each portfolio had a differing number of stocks, based on the number of stocks that passed the screener. However, all portfolios were constructed so each passing stock was equally weighted within the portfolio, with each stock getting an allocation of $10,000 of virtual capital within the portfolio.
The 13 screeners that were tested were as follows:
All of these screeners are provided by default when you first create your Stock Rover account. If you have been a Stock Rover member for a long time, the screeners in your account may not match this list, but all of the above screeners are available from the Library and any of them can be imported into your account.
By using the Stock Rover Screener Manager, the detailed descriptions for the screeners can be found in the description within the screener itself. And the screener criteria can be viewed from within the Screener Manager when the screener is selected.
An example with the Strong Buys screener selected is shown below.
Each of the 13 portfolios created from the screeners is named in a consistent fashion in the format BT – screener name 2023, where screener name is the name of the associated screener. BT is an abbreviation for Back Test.
For example the portfolio associated with the Dividend Growth screener is named BT – Dividend Growth 2023.
All of the portfolios created for the backtest exercise are available for import from the Stock Rover Library.
The following table lists the number of stocks that passed each of the 13 screeners when they were run.
You will notice that the number of stocks in a given portfolio vary from 13 (CAN SLIM) to 119 (Stock, Industry and Sector Momentum). This dispersion can dramatically impact both the performance and the risk reward profile of a screener. Generally the more stocks in a portfolio, the smaller the performance variation and the lower the volatility. Or in other words, portfolios with fewer stocks will inherently have a higher risk/reward profile.
The new portfolios that have been added to the Stock Rover Investors Library can give you a great head start to find some interesting investment candidates in 2023, as each of the portfolios is based on a popular screener in Stock Rover.
A future blog post will detail how each of these screeners and their associated portfolios fared as we make our way through 2023 and beyond.
Really appreciate your efforts to constantly trying to improve your program!
This is a very worthwhile project and one I heartily suport because of its utility to the average investor. It also illustrates why I continue to endorse Stock Rover whenever I can. This will not only be useful but I think full of surprises for all of us. I look forward to the results. And thanks for starting this
Hello I am a subscriber of the StockRover service and I admit that adding a backtest would be very very very interesting. For the time being, where can we see the effect of the BT of the portfolios?
I don’t see any comparison / result in this blog and do not see how to do after importing the BT-portfolio…
Thank you for your comment. There will be a blog in the future that indicates how the portfolios have performed since inception.
In the meanwhile, if you import any of the BT portfolios you are interested in, you can check their performance using the Portfolio Analytics tool in Stock Rover.
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