StockRanker Portfolio Rotation by Daily Stock Rankings

Summary

The document explains a portfolio approach built around StockRanker, a model that ranks stocks using historical data. Each day, the strategy buys the highest-ranked candidates and sells or replaces holdings that fall toward the bottom of the ranking. The account described uses a daily purchase target of five stocks, though the text gives no performance results or details about how the model generates its rankings.

The holding-period setting determines how long each purchase is theoretically retained. Since the model produces new rankings and buys stocks daily, capital is divided across purchase cohorts, with the approximate daily allocation tied to the holding period. Stock weights are also rank-sensitive: higher-ranked names receive larger weights rather than equal allocations. The note does not specify the holding period, weighting formula, risk controls, transaction costs, or evaluation method, so it describes portfolio mechanics rather than evidence that the approach is profitable.

Key ideas

• The model ranks the stock universe from historical data and prioritizes the highest-ranked stocks for purchase.
• Positions near the bottom of the ranking are prioritized for sale.
• The daily number of new purchases is controlled by the stock-count setting.
• The holding-period setting spreads capital across successive daily purchase cohorts.
• Portfolio weights favor stocks with stronger rankings rather than assigning equal weights.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.