Strategies

Best investment strategies we have tested

 

Below is a list of the most profitable quantitative investment strategies we found in the 50 page research paper Quantitative Value Investing in Europe: What Works for Achieving Alpha, as well as all the research and back testing we do all the time.

 

Easy to implement

Don't worry if some investment strategies look complicated, they are all easy to implement with the Quant Investing stock screener. In most cases we have already saved the stock screen so you can use it with a few mouse clicks.

If you have a question simply click the "Need Help?" button at the bottom right of your screen.

 

Don’t choose the highest return, find the right strategy for you

All these quantitative investment strategies have great returns BUT your goal here is not to choose the investment strategy with the highest return.

Your goal is to choose the investment strategy that matches your investment style. This will also be the strategy you feel most comfortable with and lets you to sleep well.

This is important because only then will you be able to stick with the strategy over the long term.

 

Read this article first

This article helps you find the best investment strategy for you: How to find your best investment strategy – not the one you expect

 

Back test your own quantitative strategy

You can also back test your own quantitative investment strategy, this article shows you how: How to back test your investment strategy

 

YES, I want to back test and implement my strategy, sign me up

 

Cheat Sheet & 3 Best Strategies

Amazing cheat sheet gives you the vital 1% you need to know to double if not triple your investment returns.

Free Bonus Reports: Best 3 strategies we have tested

Strategy Summary Period Return Index
Qi Value Investment Strategy When we tested the Qi Value investment strategy (and I started using it in my own portfolio) I honestly did not think it would work this well. Over the 16 years from May 2001 to June 2017 across markets worldwide and it returned an astounding 710.7%! Apr 2001 - Jun 2017 +13.8% pa +710.7% 16yrs +1.9% pa +35.1% 16yrs
OShaughnessy trending value investment strategy The Trending Value investment strategy was developed by James O’Shaughnessy’s and explained in his excellent book What Works on Wall Street: The Classic Guide to the Best-Performing Investment Strategies of All Time. Dec 1963 - Dec 2009 +21.2% pa over 45yrs +11.2% pa over 45yrs
Quality Adjusted Value Microcap Investment Strategy OShaughnessy This article explains a long only Quality adjusted Value microcap investment strategy, developed and tested by O’Shaughnessy asset management, that returned 20.3% annually over 34 years – It also shows you exactly how (step by step) to implement it in your portfolio. Dec 1981 to Dec 2016 20.3% pa 34yrs +8.9% pa 34yrs
Free cash flow yield and Momentum investment strategy This article shows you the back test results of a high Free Cash Flow yield and Momentum (Price Index 12 months) investment strategy and exactly how (step by step) to implement it in your portfolio Jun 1999 to May 2011 +19.6% pa +755.0% 12yrs +2.3% pa +30.5% 12yrs
Momentum and Price to Book investment strategy This article shows you the back tested results of a momentum Price to Book investment strategy. To implement this investment strategy first select the 20% of companies with the largest 6 month share price increase (momentum) and then from these companies buy those with the lowest Price to Book ratio Jun 1999 to May 2011 +23.5% pa +1157.5% 12yr +2.3% pa +30.5% 12yrs
Neglected Value Momentum investment strategy Europe Since we back tested and found that illiquidity companies can sunstantially increase your investment returns we have been looking forward to test this ratio in combination with the other best ratios and indicators we have found. This is how we came up with the Neglected, Value and Momentum investment strategy. Even though it may seem complicated the idea is very simple and it is easy to implement. Jun 2001 to Aug 2014 +22.7% pa +1374.2% 13.2yrs +3.5% pa
Price to Book and 6m Momentum Investment Strategy This investment strategy first selects the 20% of companies with the lowest Price to Book ratio and then, from this list, select the companies with the biggest 6 month share price increase - momentum May 1999 to Jun 2011 +22.4% pa +1029.4% 12yrs +2.25% p.a.
Quality Value Momentum Investment Strategy Europe The Quality Value Momentum investment strategy that contains the best ideas from our research paper Quantitative Value Investing in Europe: What works for achieving alpha, as well as all the research we have done since then. Here it is back tested in Europe (Eurozone, UK, Scandinavia and Switzerland). Jun 2001 to Aug 2014 +21.1% pa +1141.8% 13yr +3.5% pa +57.2% 13yr
Earnings Yield and Momentum investment strategy To implement this strategy you first select the 20% of companies with the highest Earnings Yield (EBIT / Enterprise Value), then from these companies select those with best 6 month stock price momentum. Jun 1999 to May 2011 +22.1% pa +1002.4% 12yr +2.25% pa
Price to Book and 12m Momentum Investment Strategy To implement this investment strategy you first select the 20% of companies with the lowest Price to Book ratio and then, from this list, select the companies with the highest 12 month momentum Jun 1999 to Jun 2011 +22.0% pa +987.3% 12yr +2.25% pa
Quality Value Momentum investment strategy North America The Quality Value Momentum investment strategy is made up from all the best ideas from our research paper Quantitative Value Investing in Europe: What works for achieving alpha as well as all the research we have done since then. Jun 2001 to Aug 2014 +19.7% pa +962.4% 10yr +7.9% pa +169.0% 10yr
Magic Formula Investing and Momentum Investment Strategy To implement this investment strategy you first select the 20% best ranked Magic Formula investing companies (most undervalued) then, from these companies, buy those with the highest six month stock price momentum. Jun 1999 to Aug 2014 +19.9% pa +783.3% 12yr +2.25% pa
Free Cash Flow Yield Investment Strategy This article shows you the back tested returns of a high free cash flow yield investment strategy. We tested both the highest free cash flow yield companies (trailing 12 months) and companies with the highest five year average free cash flow yield. Jun 1999 to Jun 2011 +19.6% pa +755.0% 12yr +2.25% pa
ERP5 and Momentum Investment Strategy To implement this ERP5 momentum investment strategy - First select the 20% most undervalued companies using the ERP5 indicator, then from these companies select those with the best 6 month stock price momentum. Jun 1999 to May 2011 +19.3% pa +732.1% 12yr +2.25% pa
Price to Book and Piotroski F-Score Investment Strategy To implement this investment strategy you first select the 20% lowest Price to Book (PB), most undervalued companies then, from this list, select those with the highest (best) Piotroski F-Score Jun 1999 to May 2011 +18.7% pa +685.2% 12yr +2.25% pa