Key insights
- The author seeks to improve their stock filtering process to avoid investments likely to lose money, focusing on US equities. They aim to identify and encode 'red flags' based on community suggestions, test these filters, and refine them based on feedback. This iterative process aims to enhance risk management and reduce investment mistakes.
Random wise people, I'm looking to avoid investments in stocks that are too likely to lose money. I use a variety of filters, and quantitative stuff, but I'm looking to systematize and upgrade my "bad stuff" filtering, to remove cr@p I shouldn't touch with a 10 foot pole. So the koan here is a multistep process: 1. Y'all suggest things that have burned you in the past. 1. I try to encode what I read in filters, and run them against the stocks (unfortunately all I've got are US Equities :-P) 1. I report back on them in the threads here, saying how my interpretation of them performed. If I had to take liberties, I tell y'all what black magic I performed. 1. You react, and tell me why my black magic is not valid. 1. You tell me to change the rebalance periods, set of stocks being filtered, persistence of the signal, etc etc 1. I adjust and report back 1. We all learn a lot, and become better. 1. I make fewer stupid mistakes.
What do you all think?