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Subject:  Re: "Mechanical Strategies"? Date:  7/30/1999  10:37 AM
Author:  GrayWulff Number:  12 of 175


"Mechanical Strategies" are defined procedures for selecting, holding, and selling stocks.

You start with some defined set of companies, like the 30 Dow Jones Industrials or the Value Line companies, and then filter and rank them by a fixed set of rules. You wind up with 5 or 10 companies which you then buy, usually in equal dollar amounts. You hold the portfolio for some predetermined length of time, usually from one month to one year. Then you select new stocks using the same mechanical strategy, sell the old ones,