The Process

Read this do it yourself guide on stock picking to understand how programming can be done to rank stocks on your own.
Then look at the following flow chart to understand the process.

The classifications are key to a much more useful spreadsheet that can adjust its ranking as the market and industries go through different stages of a cycle.

I'm not going to get into the "risk cycle" or how I will assess it, as I wish to protect that information. I am sure many of you can come up with your own classifications. perhaps you would like to look for oversold stocks using certain criteria and given that it is considered "oversold" you may be looking for something entirely different then buying a breakout, or buying a dip or pullback to a trendline, buying high volatility or buying contracting volatility. If you are buying the growth stocks or the value. I won't get into specifics about the "risk cycle" but the market shifts in and out of favor of the individual type of stock it tends to favor among other things.

Overview: The Plan

The plan is to communicate my thoughts as I work towards developing the spreadsheets.

1)Have a combination of spreadsheets to use.
2)Have a checklist to go through it ritualistically to prevent or limit mistakes.
3)Having a human element of looking over the charts to filter out those that don't have the right location and identify the risk and reward.
4)Have a spreadsheet that takes that data along with available option prices to provide some sort of weighting according to expectation.
5)Have a spreadsheet that keeps a journal of my trades that I placed combined with new ones I plan to enter and which breaks down my current allocations automatically.
6)Have a spreadsheet that analyze whatever information I can and from that semi-manually provide an expectation of return and risk for all relevant asset classes and from that automatically generate a recommendations of allocation according to expectations and adjusted based upon confidence.
7)Use a more multifaceted trading simulator spreadsheet that can pull data from the other sheets and calculate simultaneously positions with given expectation of correlation.
8)Find which combination of allocation satisfies goals of either reducing a particular probability of a drawdown or failure to be up over a certain amount in X years, maximize a probability of a TARGET... or a combination of both.
9)Code it and encrypt it:Have a programmer transfer it into an software application for PC, mac, and mobile....
10)Use it to dominate the markets...

And if I'm feeling generous and you're all lucky...
11)Market it and sell it?

Mission Statement

This Blog's purpose is to enrich humanity through the proliferation of techniques and strategies that I will use towards developing a system of spreadsheets by which I intend on using to assist me in dominating the financial markets through superior and efficient vehicle selection, risk percentages and allocations in order to satisfy the means of a particular financial goal or set of goals over a given number of trading periods.