BOTS4STOCKS vs the S&P 500

The strategy, in its own words

Flywheel buys companies whose newest earnings report scored 85 or better, carries a valuation grade of A, B or C, and did not lower or withdraw guidance: strong businesses the market has not already overpriced. It ranks candidates by a blend that rewards the newest score and the score trend (fundamental momentum) while weighting valuation heavily enough that a B-grade 93 and an A-grade 88 rank about equally and a pricey C-grade stock needs an exceptional report to make the cut; a 1-year sweet spot keeps it out of names that have already run too far. It starts fully invested on day one in 30 equal positions, skips any buy that would put more than 30% of the money in one sector, and refills a box from the whole ranked list the day it opens, so cash never idles waiting for earnings season; it uses no market-timing filter. It sells only for cause: a close 30% below the position's highest close (the hook), a new report under 70, lowered or withdrawn guidance, or a valuation grade that collapses to F, and it sells half of any position up 150% and recycles the money into the next-ranked name. The bet is that earnings quality, improving trends and a fair price are what persist, and that a wide hook lets the winners compound while the real breakdowns get cut.

The rules, locked

• 30 positions, sized all equal
• Buys: score 85+, grade C or better, 1-year gain 20% to 200%, 5-year 100%+; no lowered guidance
• When: from the whole ranked list, right away
• Ranked by rating: score 35%, trend 20%, valuation 30%, 1-year 15%
• Sells: 30% trailing stop; score below 70; grade F or worse; lowered guidance; sells half when up 150%; max 30% per sector