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No. of Recommendations: 5
I, for one, would be interested in knowing what percentage gain individual members of the MI community have made on their Total % Return since they embraced that particular investment strategy. With a powerful enough incentive, even the most mathematically challenged of us can learn to appreciate and work with the requisite numbers.


I started my MI portfolio in December of 1999. My portfolio value today is 28% higher than it was when I started. This is not quite as well as rerkeb did but I missed the boom years of 1998 and 1999.

MI as opposed to 'normal' investing, invests in a 'screen' of stocks rather than in individual stocks. A screen is usually 3 to 5 stocks that meet specific selection criteria. By using Jamie Gritton's program for backtesting existing screens, you can test the screen for how well it did over a range of years in the past. You can change varaibles having to do with how many stock to hold and how long you want to hold them. The hope here is that the screens you choose will have similar returns in the future. The beauty of Jamie's tool is that it gives you measures of Standard deviation and volitility that help you in making selections that meet your tolerance levels.

Once you have decided on a diverse set of screens, you buy the stocks that are picked for the date you choose to buy. You sell the stocks and buy new ones when your hold interval expires. If you do this in a disciplined fasion you will probably make money. I say probably because everyone in the MI community knows that just because your screens were good in the past does not necessarily mean they will make money in the future.

If you really want to understand more about MI, I suggest you start with the following post: http://boards.fool.com/message.asp?mid=16830804
LAPropDoc is a wonderful teacher and the MI community is almost always helpful to anyone who really is interested in understanding the techniques of mechanical investing.

We are always interested in hearing new ideas that can be backtested and welcome new minds in this cooperative effort.

Larry



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