You can create scoring models from scratch or based on our preconfigured templates. This section explains the procedure for creating a strategy using an existing predefined scoring model.
To add one, click on the Scoring top menu and choose +New Scoring Model. You should see this screen:
From here, you can select the model that best suits your needs. We've already preconfigured four:
Suitable for investors focusing on companies with stable, increasing dividend payments and sustainable payout ratios. It's important to understand that although these companies typically generate hefty cash flows, they probably won't be able to beat the benchmark in terms of pure stock price returns.
Growth at a Reasonable Price
Best for investors focusing on companies that have been and (probably) will keep increasing their revenues and profits in the following years (this assumption is based on revenues and EPS forecasts published by analysts). Moreover, you might also want to buy these companies only when they are not overvalued, hence the name "Growth at Reasonable Price."
This is probably the best strategy for most investors and probably the one that can help you beat the benchmark with only slightly higher volatility and drawdowns compared to S&P 500.
If your focus is on companies growing at the highest possible rate, no matter what, that is a good strategy for you. In this case, you are not concerned with current valuations as long as the company's predicted growth is very high. Bear in mind that this strategy is hazardous since it doesn't take into consideration any fundamental or valuation criteria.
Suitable for investors looking for a good buying opportunity (cheap stocks), predominantly among mature companies with established industry positions. On the one hand, this strategy will help you find and evaluate cheap companies, but on the other hand, a cheap company often will result in a poor-performing company. Hence you might want to use this strategy as a timing signal for buying rather than a set of criteria that will help you find the best stocks on the market.
Which scoring model should I choose?
Selecting a suitable scoring model is really up to you, depending on your particular needs, and we can not take any responsibility for recommending the "right" scoring model for you. That being said, if you need to ask these questions, probably the best place to start is to choose the Growth at a Reasonable Price model.
When you choose the right model, the preferred strategy is copied and added to your account. Your account now has the strategy with the categories and rules precisely as in our preconfigured template.
Of course, you can change these rules, delete them, add new ones, and do whatever you want with the model. In case of something goes wrong, you can always reset it to default settings by adding the model one more time.
Keep in mind that you won't see any companies after adding the desired model to your account. Predefined scoring models contain only categories, rules, and criteria preconfigured with some reasonable (in our opinion) parameters and grading scales. To see them in real action, you need to feed those models with companies you want to score (aka analyse). There are at least two ways to do that.
First of all, you can add companies manually one by one by typing their tickers or names into the search field:
This method is suitable when you want to add just a few companies already on your mind, but it takes time and lacks scale. Hence the second method, which is...
Using a screener to narrow the whole stock universe to as little as a few dozen or as many as a few thousand companies that you can add all at once to your model with a single click. More on that in the Screener section.
If you want to go further and try to build a new model from scratch, check out this article: Building your own scoring model.