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You could try and write an algo that would carry out your value investing strategy. You could trawl Yahoo for P/E or whatever value metrics you want to look at
by minimax 13y ago
You could try and write an algo that would carry out your value investing strategy. You could trawl Yahoo for P/E or whatever value metrics you want to look at buy or sell based on certain thresholds.
- gbasin 13y agoSuccessfully implementing a value strategy cannot be codified into an algo EDIT: There are just too many exceptions and nuances. Every single investment involves more exceptions and nuances that would need to be coded. And if you don't think so, I would bet you don't have alpha :)
- nissimk 13y agoI guess I'm agreeing with your statement "Successfully," but it doesn't mean it hasn't been tried: http://www.jatit.org/volumes/Vol51No1/24Vol51No1.pdf http://www.jatit.org/volumes/Vol51No1/24Vol51No1.pdf Also, weren't the quant funds that were involved in the summer 2007 blowup all running automated value strategies based on Fama+French factor models? It works really great until it doesn't.
- gbasin 13y agoOh plenty of tryers. Value investing is a lot harder than it looks. And what you're talking about isn't really the definition of value investing (like graham-dodd + infinite details on the individual companies). Those quant funds were running factor models and mid-frequency stat arb