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Build your investing strategy

Build your investing strategy with
Strategy Builder

There are many ways to make choices about your next investment. We have the tools you need to find criteria that suits you, and to use that for filtering the markets and to establish a routine for discovering the next stocks that you might invest in.

Tutorial
4 min read
Quiz

Strategy Builder makes it easy to follow a specific investment strategy, where you’re familiar with the criteria being used to select stocks, and it's supported by backtesting.

1

To get started, click to the Screening tab.

By default we will show you a list of instruments that are Top Performers on USA/Canada Exchanges. Continue to build off this list by adding and removing criteria or start fresh by pressing Clear All found in the top right corner.

The Criteria dropdown gives you access to an impressive collection of data points and analytics that can be used to select stocks. These are organized into categories including Company Basics, Fundamentals, Technicals and Trading.

2

Let’s look at some of the Popular criteria.

Stock price is popular. Some investors prefer to filter out expensive stocks at the far right. Some prefer to filter out penny stocks while others may in fact want to narrow down to focus only on these.

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Volume is also popular.

Volume is a way to make sure you’re dealing with stocks that have enough trading interest that you can liquidate more easily later without worrying too much about slippage in your fill price.

4

Bullish Indicators and Oscillators is also a popular filter.

This is one of several criteria found under the Technical's category. Now it’s possible to select all bullish indicators or to narrow the search to a specific study such as moving averages or RSI.

Have you noticed the total number of matches yet?

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Here you can see how many stocks match  the criteria you’ve selected, and of course how many stocks meet all of these criteria combined.

2

Many investors are concerned with the earnings performance of a company.

You can find Earning Yield listed as an option in the Valuation category under Fundamentals. Click to learn more about the criteria. The information here explains that the Earning Yield can be used to tell me if the shares are well-priced versus its earnings.

As you build your investing strategy... scroll down to see the top matches.

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This will give you a tidy list of possibilities and our investing customers will often work through their list one by one.

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Explore the details.

Click on the stock ticker to view more details about the instrument and see why it ranked where it did based on the criteria you've selected.

3

Backtest your strategy.

If you scroll past the results table, you will then find the part of the page where you can backtest your strategy. Select the index you would like to use to backtest your strategy against, then press Calculate.

The blue line is your strategy's performance over the past 5 years. Meanwhile, the red line is the performance of the index you chose.

We hope you now understand how beneficial it is to have the Trading Central research team on your side and how simple it is to harness their insights! Take advantage of Analyst Views today to plan your trades with expert technical analysis!

Test your knowledge with this short quiz.

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