FRT Trading Platform
This area uses 3 primary areas to score the stock's technical.
Two indicators used are MACD and RSI.
Additionally we evaluate Momentum of the stock. The is done by using 4 indications to build the momentum score. They are Is the stock above or below the 5 day Simple Moving Average (SMA). Is it above or below the 15 SMA. Is the 5 day SMA above or below the 21 day SMA and is the 15 day SMA above or below the 50 day SMA.
These are weighted with momentum carrying more influence on the score.
Inner Circle Ranking comprised of weighted scoring between insider scores and institution scores.
Proprietary Insider score color are a time regression algorithm based on size of the transactions, roles of transactions and number of transactions. These are then assigned weighted scoring ranges as follows: 0 or greater is green, from 0 to -10 is yellow, greater than -10 is red. The weight is favored on the sell side because generally there is always going to be some selling.
If the selling gets above the company's norm, or if the selling is by directions or C level executives (again above the norm), or if there is cluster selling in a short period, these will weigh more on the scoring and will cause it to go red.
Institutions scores examine the trend of the overall institution ownership around an asset. In addition, various weighted scores such as: Number of institutions adding positions, Number of institution selling positions, New Institution buyers, and New Institution exiting. These factors are aggregated weighted toward recent activities to derive the scores.
The Valuation Score algorithm comprised of proprietary weighted ranking of these factors: PE,
PEG, Price/Cash Flow Ratio, Price/Book Ratio, Price/Sales Ratio, Alpha, Beta, R-Square, and
For Alpha, Beta, and R-Squared, we track the historical data trend to evaluate how this stock has related to the market over time.
This uses fundamental, PE, growth rates and earning forecast to project a forward price of the stock. Note: Stocks with negative earnings will not have a projected price. The discount rate can be changed to evaluate a higher discount rate on more volatile stocks.
There are 20 data points in the score. ( i.e. Sales, assets) These roll up to 5 higher level. (i.e. Growth, Profitability) These roll up to create the single Fundamental Score.
You can see that structure on the fundamentals page on how they are grouped.
For each of these 20 points we track performance over Quarterly, Annual, and Trailing Twelve Months (TTM).
Each of these 20 data points are an aggregation of the data points that make up that point and each data points have its own weighting criteria. Example: Sales would include the revenue points from the company. These could include: Direct sales revenue, recurring/subscription revenue, interest for financial companies.
The easiest way to look at it is to consider an income statement and a balance sheet and how these can be a one page report, but it can drill way down.
Then weighing for each the data point are assigned to derive the overall score. The weight is different for different Sectors.