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OranjeMannetje wrote, “I’ve been investing in the Magic Formula for just over 15 years…..My tracking of the MFI strategy is ending with this update.

“It doesn’t appear to be prudent going forward to continue investing in a diversified portfolio based on the strategy. Maybe on a risk adjusted basis or some other metric the results are good, but that I don’t know.”

Oran has done amazing work. My question is: should this continue?
No, it's time to give up on Magic Formula and invest in index funds.
Yes, keep going, pretty much just as the book/website says
Yes, keep going, but with real modifications... (suggest below!)

Click here to see results so far.

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I'm willing to do some simple tracking, if there is enough interest. Anybody else?
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I gave up on MFI many years ago. First off, backtests that I and other people ran did not come anywhere close to what he claimed in the book. IIRC, my backtest showed only half what was claimed.

Second off, it never did very well in the time I did it. In fact, it kept picking a couple of loser stocks, month after month the same 2 they went down and down.

Let this board join the club of dead boards.
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