Methodology/Score Calculation
Average Score
To get the average score, I use a method based around the Ichimoku cloud calculation (Ichimoku - Investopedia)
I have collected the historical WEEKLY data over the last year for every stock.
Weekly data has been chosen to provide a greater base of reliable data, the final figure is collected after the close of the market on Friday, according to the Excel Stock feature.
The calculations include
The Conversion line: The highest, and lowest values, in the last 9 closing periods, divided by 2
The Base line: The highest and lowest values, in the last 26 closing periods, divided by 2
Leading Span A: The Conversion + Base / 2
Leading Span B: The maximum and minimum value, of the last 52 closing periods, divided by 2
In comparison to the traditional ICHI calculation, I have omitted high and low intraday figures.
On a chart, the presence of Line A, and Line B would produce the basic cloud image. We are predominantly looking for stocks with a price that is above the cloud.
The highest figure of the two spans (the top of the cloud), is then used, with the current SP to calculate an average (e.g if the SP is 10, and the highest figure of both A/B is 5, then the average is +100% )
Trend score
If the figure of Leading Span A is above B, we are saying the trend is UP, and if it is the opposite, we are saying the trend is DOWN. Each holding is given a score based on the percentage that they are UP or DOWN, in relation to the top of the ‘cloud’, i.e the highest figure of Leading A or B
So its the Average score + the RSI score + the Trend score, gives the final score, note this is universal for all sectors
RSI Score
The RSI is calculated using the standard RSI method, over 14 previous periods, with the score being calculated in relation to the RSI figure of 70 (overbought)
E.g A holding with a RSI of 70 is a score of 0, while a holding with an RSI of 30 scores 0.57. Anything above 70 is given a minus score.
All rebalancing, will be consistent and will be conducted on the open of the relative Monday morning, this allows the decision making to be made consistently.
Issues
Volume/Liquidity
Some stocks that are going to place high on the rankings, don’t have fantastic volume/spread characteristics, I will need to make decisions on whether to buy certain holdings, on this metric.
I am not trusting the system blindly, each decision will be looked at further.
I also want to avoid using these metrics in the score calculation for now, as I am wary of putting too many variables in play
Fractional capabilities
T212 is not quite there yet with all of the holdings being fractional, and thus going in the pie, so hopefully as time goes on, this will only improve.
In addition, all orders will be market orders.
Methodology
It is not mathematically pure, of that I know. Please feel free, if you think of anything that can help or assist to make the methodology more reliable, but this an admission, that mathematically perfect, is it not.
You will notice I’ve omitted healthcare completely, as I’m not sure this is the right strategy for the majority of that sector, at the moment, I may run more tests.
I’ve also combined some sectors to add balance (i.e Communications and Utilities, Industrials and Materials), due to depth of the exchange.
Nature of the Stock Market
The nature of the market, any external factor can throw everything off course within a moment,
It also must be noted, that as soon as the market opens on Monday morning, the data loses its 100% accuracy, as such this is why data is collected and confirmed on Friday, and looked at over the weekend.
FX
All stocks are subject to fluctuations of the relevant FX rate
Measures of Success
I am simply looking to be profitable every month, and keep losses inside low % ranges
Any profit made at the end of the cycle, will be added into the pie on rebalancing.
The screener was designed to rank and weight stocks based on Growth, and Relative Strength, so that I could implement both mid-long term strategies, and short term (swing trades). I can filter between the two if needed.
Mid-long term
I’m looking to create pies with specific sectors that have a healthy % of promising growth in the figures, in which I have done in the US Tech, and Financial sector, to positive success so far, very early days though! I’ve shared the links below.
To start a pie, I’m looking primarily for + Growth, holdings that are trending UP, with the average RSI below 70 (as an entry point!). There is no maximum amount of holdings, I will fill the pie with as many of the qualifying stocks as I can, up to the 50 permitted. I’m still experimenting in regards to balance %.
I don’t have any LSE pies at the moment, but am looking at Tech and Consumer sectors, as potential in the future, or even potentially a ‘LSE PIE’, in its entirety.
I will aim to review, rebalance and update each Pie on a monthly basis.
Short-term
I’m looking for edges in regards to stocks that have positive growth, but have fallen in regards to the RSI index indicating that there may be an opportunity for a reversal,
Current pies - 3 weeks from creation, 1 week from rebalance and reconfiguration
US TECH - equal balance: + 4.5%
www.trading212.com/pies/l79z8GBLgq0X2ERcRXaXSUSSMcld
US FINANCE - split balance: + 2%
www.trading212.com/pies/l79z8GBLgq0X2ERcQpySz6qhU5n0
Moving on to the week ending October 23rd
Top 20 - Avg % Growth
| # | NAME | SECTOR | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|---|
| 1 | AO WORLD PLC (XLON:AO.) | CONSUMER | 50.00% | UP: 13.47% | 88.67 |
| 2 | XAAR PLC (XLON:XAR) | TECH | 38.15% | UP: 21.86% | 71.74 |
| 3 | PENDRAGON PLC (XLON:PDG) | CONSUMER | 37.79% | UP: 8.66% | 74.06 |
| 4 | VICTORIA P.L.C. (XLON:VCP) | CONSUMER | 35.85% | UP: 12.21% | 76.88 |
| 5 | LUCECO PLC (XLON:LUCE) | IND.MAT | 31.82% | UP: 19.87% | 78.07 |
| 6 | MIRRIAD ADVERTISING PLC (XLON:MIRI) | IND.MAT | 30.11% | UP: 15.72% | 73.88 |
| 7 | G4S PLC (XLON:GFS) | CONSUMER | 28.97% | UP: 12.29% | 70.99 |
| 8 | HALFORDS GROUP PLC (XLON:HFD) | CONSUMER | 27.13% | UP: 18.34% | 69.43 |
| 9 | TREMOR INTERNATIONAL LTD (XLON:TRMR) | COMMS.UTIL | 25.98% | UP: 8.08% | 76.74 |
| 10 | LAMPRELL PLC (XLON:LAM) | ENERGY | 25.34% | DOWN: -6.82% | 60.13 |
| 11 | CERES POWER HOLDINGS PLC (XLON:CWR) | ENERGY | 25.20% | UP: 19.74% | 68.55 |
| 12 | Kainos Group PLC (XLON:KNOS) | TECH | 23.80% | UP: 14.93% | 65.13 |
| 13 | WILLIAM HILL PLC (XLON:WMH) | CONSUMER | 23.79% | UP: 21.90% | 71.04 |
| 14 | MOTHERCARE PLC. (XLON:MTC) | CONSUMER | 23.48% | DOWN: -15.24% | 70.29 |
| 15 | 888 Holdings Public Limited Company (XLON:888) | CONSUMER | 22.63% | UP: 18.63% | 75.60 |
| 16 | GREATLAND GOLD PLC (XLON:GGP) | IND.MAT | 20.63% | UP: 25.37% | 68.19 |
| 17 | KINGFISHER PLC (XLON:KGF) | CONSUMER | 20.06% | UP: 16.31% | 77.61 |
| 18 | ROYAL MAIL PLC (XLON:RMG) | IND.MAT | 20.05% | UP: 10.07% | 64.63 |
| 19 | GAMES WORKSHOP GROUP PLC (XLON:GAW) | CONSUMER | 19.97% | UP: 17.97% | 71.32 |
| 20 | ARGO BLOCKCHAIN PLC (XLON:ARB) | FINANCIALS | 19.91% | UP: 3.36% | 60.82 |
Snapshot figures - All holdings
Trending UP - 196 - 41%
Trending DOWN - 281 - 59%
Average RSI - 51.58
Bottom 10 - Avg % Growth
| # | NAME | SECTOR | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|---|
| 1 | TULLOW OIL PLC (XLON:TLW) | ENERGY | -80.28% | DOWN: -80.86% | 40.90 |
| 2 | PREMIER OIL PLC (XLON:PMO) | ENERGY | -79.94% | DOWN: -61.62% | 28.95 |
| 3 | HAMMERSON PLC (XLON:HMSO) | RETAIL ESTATE | -78.80% | DOWN: -63.70% | 36.08 |
| 4 | CAPITAL & REGIONAL PLC (XLON:CAL) | RETAIL ESTATE | -77.88% | DOWN: -58.99% | 22.32 |
| 5 | REVOLUTION BARS GROUP PLC (XLON:RBG) | CONSUMER | -77.21% | DOWN: -62.41% | 29.36 |
| 6 | CINEWORLD GROUP PLC (XLON:CINE) | CONSUMER | -77.07% | DOWN: -59.93% | 34.32 |
| 7 | PETRA DIAMONDS LIMITED (XLON:PDL) | IND.MAT | -75.34% | DOWN: -67.47% | 38.38 |
| 8 | CAPITA PLC (XLON:CPI) | RETAIL ESTATE | -75.10% | DOWN: -68.32% | 33.12 |
| 9 | Stobart Group Limited (XLON:STOB) | IND.MAT | -71.44% | DOWN: -58.38% | 31.43 |
| 10 | SAGA PLC (XLON:SAGA) | CONSUMER | -70.79% | DOWN: -57.44% | 32.78 |
Top 10 Growth - Week ending Oct 23rd
These stocks are characterised by their average (%) being above -3%, with an RSI below 65 and trending UP
| # | NAME | SECTOR | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|---|
| 1 | DE LA RUE PLC (XLON:DLAR) | CONSUMER | 18.18% | UP: 18.74% | 55.79 |
| 2 | BEST OF THE BEST PLC (XLON:BOTB) | CONSUMER | 7.87% | UP: 24.71% | 55.87 |
| 3 | ILIKA PLC (XLON:IKA) | ENERGY | 17.07% | UP: 23.60% | 63.37 |
| 4 | FEVERTREE DRINKS PLC (XLON:FEVR) | CONSUMER | 3.66% | UP: 21.32% | 54.68 |
| 5 | ITM POWER PLC (XLON:ITM) | ENERGY | 1.93% | UP: 19.86% | 54.43 |
| 6 | CMC MARKETS PLC (XLON:CMCX) | FINANCIALS | 7.61% | UP: 21.00% | 59.44 |
| 7 | KEFI GOLD AND COPPER PLC (XLON:KEFI) | IND.MAT | 9.25% | UP: 20.87% | 60.78 |
| 8 | GOCO GROUP PLC (XLON:GOCO) | TECH | 5.78% | UP: 17.14% | 55.85 |
| 9 | PLAYTECH PLC (XLON:PTEC) | TECH | 10.12% | UP: 16.65% | 58.76 |
| 10 | Amur Minerals Corporation (XLON:AMC) | IND.MAT | 15.45% | UP: 7.30% | 56.08 |
Top 10 Swing - Week ending Oct 23rd
These stocks are characterised by having a maximum RSI of 45, and trending UP.
| # | NAME | SECTOR | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|---|
| 1 | HOMESERVE PLC (XLON:HSV) | IND.MAT | -5.81% | UP: 10.27% | 41.27 |
| 2 | DCC PUBLIC LIMITED COMPANY (XLON:DCC) | ENERGY | -15.40% | UP: 1.27% | 29.73 |
| 3 | YELLOW CAKE PLC (XLON:YCA) | FINANCIALS | -7.05% | UP: 10.02% | 42.43 |
| 4 | DIRECTA PLUS PLC (XLON:DCTA) | IND.MAT | -11.55% | UP: 7.92% | 39.25 |
| 5 | CRANSWICK PLC (XLON:CWK) | CONSUMER | -5.62% | UP: 3.13% | 40.83 |
| 6 | IOMART GROUP PLC (XLON:IOM) | COMMS.UTIL | -6.62% | UP: 6.40% | 42.92 |
| 7 | SMART METERING SYSTEMS PLC (XLON:SMS) | ENERGY | -6.21% | UP: 7.20% | 44.42 |
| 8 | LANCASHIRE HOLDINGS LIMITED (XLON:LRE) | FINANCIALS | -7.93% | UP: 2.11% | 39.68 |
| 9 | DEVRO PLC (XLON:DVO) | CONSUMER | -5.69% | UP: 4.79% | 44.04 |
| 10 | CENTAMIN PLC (XLON:CEY) | IND.MAT | -23.69% | UP: 9.21% | 36.99 |
Sector specific rankings - Week ending Oct 23rd
Top 10 - Consumer - Avg Growth (%)
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | DE LA RUE PLC (XLON:DLAR) | 18.18% | UP: 18.74% | 55.79 |
| 2 | BEST OF THE BEST PLC (XLON:BOTB) | 7.87% | UP: 24.71% | 55.87 |
| 3 | FEVERTREE DRINKS PLC (XLON:FEVR) | 3.66% | UP: 21.32% | 54.68 |
| 4 | GVC HOLDINGS PLC (XLON:GVC) | 10.1% | UP: 20.27% | 61.82 |
| 5 | EVE SLEEP PLC (XLON:EVE) | 4.2% | UP: 20.13% | 58.62 |
| 6 | OCADO GROUP PLC (XLON:OCDO) | -2.80% | UP: 18.42% | 54.12 |
| 7 | FLUTTER ENTERTAINMENT PLC (XLON:FLTR) | 7.27% | UP: 17.23% | 61.71 |
| 8 | STUDIO RETAIL GROUP PLC (XLON:STU) | 6.64% | UP: 12.77% | 58.54 |
| 9 | DUNELM GROUP PLC (XLON:DNLM) | 12.42% | UP: 15.82% | 64.89 |
| 10 | JD SPORTS FASHION PLC (XLON:JD.) | 14.23% | UP: 12.63% | 64.75 |
Top Consumer Swing Trades
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | CRANSWICK PLC (XLON:CWK) | -5.62% | UP: 3.13% | 40.83 |
| 2 | DEVRO PLC (XLON:DVO) | -5.69% | UP: 4.79% | 44.04 |
| 3 | BOOHOO GROUP PLC (XLON:BOO) | -13.89% | UP: 8.49% | 44.74 |
Top 10 - Energy - Avg Growth (%) -
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | ILIKA PLC (XLON:IKA) | 17.07% | UP: 23.60% | 63.37 |
| 2 | ITM POWER PLC (XLON:ITM) | 1.93% | UP: 19.86% | 54.43 |
| 3 | HOCHSCHILD MINING PLC (XLON:HOC) | 6.25% | UP: 11.69% | 54.54 |
| 4 | SERICA ENERGY PLC (XLON:SQZ) | 3.75% | UP: 4.91% | 53.10 |
Top Energy Swing Trades
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | DCC PUBLIC LIMITED COMPANY (XLON:DCC) | -15.40% | UP: 1.27% | 29.73 |
| 2 | SMART METERING SYSTEMS PLC (XLON:SMS) | -6.21% | UP: 7.20% | 44.42 |
Top 10 - Financial - Avg Growth (%)
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | CMC MARKETS PLC (XLON:CMCX) | 7.61% | UP: 21.00% | 59.44 |
| 2 | DRAPER ESPRIT PLC (XLON:GROW) | 12.45% | UP: 14.34% | 60.54 |
| 3 | NUMIS CORPORATION PLC (XLON:NUM) | 1.15% | UP: 13.11% | 54.00 |
| 4 | LONDON STOCK EXCHANGE GROUP PLC (XLON:LSE) | -1.61% | UP: 10.11% | 50.12 |
| 5 | LIONTRUST ASSET MANAGEMENT PLC (XLON:LIO) | 1.09% | UP: 9.89% | 52.09 |
| 6 | ARGO BLOCKCHAIN PLC (XLON:ARB) | 19.91% | UP: 3.36% | 60.82 |
| 7 | BH GLOBAL LIMITED (XLON:BHGG) | -0.95% | UP: 8.97% | 51.45 |
| 8 | FIDELITY EUROPEAN VALUES PLC (XLON:FEV) | 3.27% | UP: 6.88% | 53.38 |
| 9 | BEGBIES TRAYNOR GROUP PLC (XLON:BEG) | 1.30% | UP: 4.34% | 50.94 |
| 10 | Greencoat Renewables PLC (XLON:GRP) | -1.46% | UP: 2.51% | 48.06 |
Top Financial Swing Trades
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | YELLOW CAKE PLC (XLON:YCA) | -7.05% | UP: 10.02% | 42.43 |
| 2 | LANCASHIRE HOLDINGS LIMITED (XLON:LRE) | -7.93% | UP: 2.11% | 39.68 |
| 3 | BLACKROCK INCOME AND GROWTH INVESTMENT TRUST PLC (XLON:BRIG) | -6.46% | UP: 0.22% | 43.93 |
Top 10 - Industrial.Materials - Avg Growth (%)
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | KEFI GOLD AND COPPER PLC (XLON:KEFI) | 9.25% | UP: 20.87% | 60.78 |
| 2 | Amur Minerals Corporation (XLON:AMC) | 15.45% | UP: 7.30% | 56.08 |
| 3 | BHP GROUP PLC (XLON:BHP) | -0.74% | UP: 10.36% | 47.42 |
| 4 | CRH PUBLIC LIMITED COMPANY (XLON:CRH) | 2.57% | UP: 12.12% | 51.04 |
| 5 | FRESNILLO PLC (XLON:FRES) | 6.64% | UP: 17.04% | 58.05 |
| 6 | FERREXPO PLC (XLON:FXPO) | 4.34% | UP: 12.49% | 53.25 |
| 7 | PAN AFRICAN RESOURCES PLC (XLON:PAF) | -2.96% | UP: 15.85% | 50.86 |
| 8 | DIALIGHT PLC (XLON:DIA) | 1.75% | UP: 9.39% | 49.94 |
| 9 | ASHTEAD GROUP PUBLIC LIMITED COMPANY (XLON:AHT) | 12.04% | UP: 16.54% | 62.83 |
| 10 | KAZ MINERALS PLC (XLON:KAZ) | 12.84% | UP: 14.91% | 62.39 |
Top Industrial.Materials Swing Trades
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | HOMESERVE PLC (XLON:HSV) | -5.81% | UP: 10.27% | 41.27 |
| 2 | DIRECTA PLUS PLC (XLON:DCTA) | -11.55% | UP: 7.92% | 39.25 |
| 3 | CENTAMIN PLC (XLON:CEY) | -23.69% | UP: 9.21% | 36.99 |
| 4 | GULF MARINE SERVICES PLC (XLON:GMS) | -21.30% | UP: 12.12% | 41.42 |
| 5 | RESOLUTE MINING LIMITED (XLON:RSG) | -17.43% | UP: 2.66% | 38.75 |
Top 10 - Retail Estate - Avg Growth (%)
| # | NAME | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|
| 1 | LONDONMETRIC PROPERTY PLC (XLON:LMP) | 1.75% | UP: 11.02% | 52.14 |
| 2 | SEGRO PUBLIC LIMITED COMPANY (XLON:SGRO) | 2.22% | UP: 8.16% | 54.48 |
| 3 | ASSURA PLC (XLON:AGR) | -0.29% | UP: 2.01% | 49.51 |
| 4 | TRITAX BIG BOX REIT PLC (XLON:BBOX) | 8.86% | UP: 10.34% | 63.08 |
| 5 | SAFESTORE HOLDINGS PLC (XLON:SAFE) | 8.93% | UP: 5.64% | 60.72 |
Top Retail Estate Swing Trades
No entries
Top 10 - Tech - Avg Growth (%)
| # | NAME | SECTOR | AVG (%) | TREND (%) | RSI |
|---|---|---|---|---|---|
| 1 | GOCO GROUP PLC (XLON:GOCO) | TECH | 5.78% | UP: 17.14% | 55.85 |
| 2 | PLAYTECH PLC (XLON:PTEC) | TECH | 10.12% | UP: 16.65% | 58.76 |
| 3 | FDM GROUP (HOLDINGS) PLC (XLON:FDM) | TECH | 5.94% | UP: 12.18% | 56.42 |
| 4 | CODEMASTERS GROUP HOLDINGS PLC (XLON:CDM) | TECH | 12.36% | UP: 13.83% | 62.51 |
| 5 | NEXT PLC (XLON:NXT) | TECH | 9.88% | UP: 7.45% | 58.41 |
| 6 | THE SAGE GROUP PLC. (XLON:SGE) | TECH | -1.60% | UP: 5.04% | 48.70 |
| 7 | ELECTROCOMPONENTS PUBLIC LIMITED COMPANY (XLON:ECM) | TECH | 9.40% | UP: 9.96% | 59.94 |
| 8 | SDL PLC (XLON:SDL) | TECH | 3.85% | UP: 14.79% | 59.75 |
| 9 | EXPERIAN PLC (XLON:EXPN) | TECH | 5.43% | UP: 8.41% | 56.42 |
| 10 | FIRST DERIVATIVES PUBLIC LIMITED COMPANY (XLON:FDP) | TECH | 6.95% | UP: 15.72% | 62.84 |
Top Tech Swing trades
No entries