Setting up a new scoring model
To start, use the left navigation pane, navigate to the Fundamental Scoring category, and click on the option + New Scoring Model. This will take you to a new screen.
Enter the name for your new scoring model at the bottom of the page, then click Create. After selecting this option, a new window will open, asking you to create your first Rule Category.
These categories organize your metric rules based on a common theme. (i.e., value, growth, fundamentals, etc.).
For instance, metrics like P/S Ratio, PS Ratio VS Median, and Price Target Upside could belong to a category named Valuation.
Choose a category name that helps you grasp the overall score for that category.
Scoring Model Advanced Settings
When creating your own model from scratch, you have a few advanced settings to configure:
Required years since IPO
Tolerance for low scores and missing data
Green(high) and red (low) score thresholds
For our example, set the required IPO years to 5, then click Save.
For a detailed breakdown of each advanced setting, click here to learn more.
The remaining settings we'll leave as is.
Your view should look like the figure below:
Metric Rules
The next step is to add our first rule to the model. To add a new Rule while still in your Scoring Model, click New Rule at the top left.
Choose any of the 5 rule types or choose a pre-set rule. To learn more about each rule, see our dedicated article here.
Static Range
Change Over Time
Metrics Comparison
Historical Range
Max Decline
Pre-Configured Rules
For our example, let's choose the Historical Range rule type to go to the Historical Range rule settings.
Let's name our rule 'PS Ratio'
Choose the financial metric using the same name. (After you add the financial metric, Scrab displays previews of the rule.)
Let's leave the maximum score at 3. This lets Scrab know that 3 is the highest possible points this rule can get.**
Leave Higher Values Prefered unchecked, Years for the channel at 3, keep Horizontal Channel check, and leave must-have rule unchecked.**
Click save to add the new rule.
The rule you've just added is now under the 'Valuation' rule category.
To add a new rule category, click the new category button, name it, and save. Repeat the previous steps until you have all the categories and metric rules you want.
**Learn how to configure each rule type, please read Rule Type Settings.
Add Companies
Now that you've created your first rule, you can add companies for Scrab to score for you. To add companies:
If you're not in the Scoring Model Settings view, click on your scoring model name to go to the settings.
Then, at the top middle, click the Companies button. This will take you to your scoring model's company list view.
Click Add Companies at the top left corner and enter the company tickers you want to add. Separate each ticker with a comma.
Press enter once you typed out all the tickers.
The companies are now part of your scoring model and have automatically been scored by Scrab based on the rule we've just added.
You can also add new companies to a scoring model as you find them.
Add them from their Company Details page, or use Scrab's Screener to add more companies simultaneously!
