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Algorithm - Modified Quality Companies Model

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.

1 response

Larger ROIC weight