- In a previous strategy called the "Wisdom of the Crowds", I used Average Dollar Volume to select a single stock and this strategy seemed to outperform the market
- However, it was pointed out that the strategy selected mostly AAPL. Then how can one know if the effect is due just to AAPL being AAPL or the strategy itself
- Upon further investigation, I found out, that the strategy was susceptible to picking stocks who had a massive sell-out since Average Dollar Volume was also large of those stocks
- The current strategy uses the difference of Average Dollar Volume in two different time periods and selects upto 5 stocks.
Fixing "The Wisdom of The Crowds"
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