Modified algorithm of Chris Cain's "Quality Companies in an Uptrend”
I want to eventually use this model to build a stock bot with Alpaca. Hence why I set the commission to 0.
Quality factors:
- Good ROIC
- EBITDA Margin
- Free Cash Flow
- Momentum (SMA50 > SMA200)
Macroeconomic Factor:
- Trade only when the SPY index is on an upward momentum
Strategy: Long the top 20 stocks that perform on the metrics of the above factors every month. The factors are weighted equally.