The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Mechanical Investing

URL:  http://boards.fool.com/dr-bob-wrote-that-would-get-at-the-vl-part-but-30432428.aspx

Subject:  Re: MIVLI: MI VL Index Date:  12/14/2012  2:26 PM
Author:  Zeelotes Number:  240547 of 258158

Dr. Bob wrote:
That would get at the VL part but would miss the MI part: Are the screens adding value? Is your particular selection of screens doing better or worse than the average MI screen?

My personal take on this question of an MI Value Line Index is that no one in his right mind would invest in an index containing all of the MI screens developed and shared here.

In a sense, everyone cherry picks what it is that they are going to use to invest in. Hopefully, that cherry picking, as Jim has pointed out in this thread is:

http://boards.fool.com/blending-at-a-whole-new-level-updated...

If you're going to pick stocks mechanically and use backtests to
determine what methods work well, it makes sense to pick your screens
mechanically and use backtests to determine which of those work well.


It is foolishness in my view to judge the effectiveness of the work that has been done here by comparing it to an index of all screens tracked. Part of the work done on this board has been related to the wisdom of using blends. In the early years attempts were made to create a blend