| Strategy |
Dobermans of the Dow Backtest |
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This strategy is a slightly modified version of the 'Dobermans of the Dow' strategy introduced by Michael Cannivet in Forbes magazine in 2019. Unlike the original strategy, we do not rank the components of the DJIA index by ROE (Return On Equity) and FCF (Free Cash Flow) but set the filtering criteria so that the stocks have ROE and FCF above the threshold values. Next, we rank the selected stocks by FCF in descending order and take the top ten. To do this, we use the 'Prioritize Stocks by' parameter and limit the portfolio size to 10 positions. Conditions for closing a position are not set, but the portfolio is rebalanced annually. |
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| Type of Positions |
Long |
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| Criteria for Opening a Position: |
index(dow) and roe > 10 and fcf_yield > 5
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| Prioritize Stocks by [?] |
Highest FCF Yield |
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| Order Execution Model: |
Close Prices
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| Initial Capital: |
$10,000 |
| Capital at Risk: |
10%
per trade
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| Portfolio Max Size: |
10 positions |
| Comm. per Trade: |
0.05%
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| Avg Bid-Ask Spread: |
0.1% |
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| Close position at the end of: |
Year |
| Period: |
1/1/2026 - 12/31/2026 |
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| Total Profit: |
$1,070 |
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Total Trades: |
10 |
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| Capital Growth: | 10.7% |
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Profit Trades, % of Total: | 60% |
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| Profit Factor: [?] |
6.32 | |
Avg Trade Duration, days: | 191 |
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| Payoff Ratio: [?] |
4.22 |
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Avg Profit per Trade: | 11% |
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| Max Drawdown: | 6% |
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Avg Profit per Day: | 0.057% |
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| Max Drawdown, $: |
705 |
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Avg Market Impact: [?] |
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| Restoration Factor: [?] |
1.52 |
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Overall Viability Score: [?] |
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| Avg Annual Return: |
10.7% |
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CAGR: [?] | 10.7% |
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| Year |
S&P 500 |
Equity |
Jan | Feb |
Mar | Apr | May |
Jun | Jul | Aug |
Sep | Oct | Nov |
Dec |
| 2026 |
10.73 |
10.70 |
-1.18
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1.12
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-3.38
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4.10
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3.48
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-0.09
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2.54
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3.50
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-5.09
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5.76
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| Symbol |
Entry Date |
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Exit Date |
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Shares |
Profit, $ |
Exit On |
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MI
[?] |
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06/30/2026 |
223.23 |
10/30/2026 |
218.33 |
4 |
-21.36 |
Period End |
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 |
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02/25/2026 |
234.12 |
10/30/2026 |
257.81 |
4 |
92.74 |
Period End |
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01/16/2026 |
110.35 |
10/30/2026 |
110.94 |
9 |
3.32 |
Period End |
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01/02/2026 |
282.02 |
10/30/2026 |
396.22 |
3 |
340.39 |
Period End |
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01/02/2026 |
37.96 |
10/30/2026 |
44.73 |
26 |
173.78 |
Period End |
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01/02/2026 |
369.39 |
10/30/2026 |
319.11 |
2 |
-101.89 |
Period End |
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01/02/2026 |
321.09 |
10/30/2026 |
466.01 |
3 |
432.18 |
Period End |
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01/02/2026 |
329.90 |
10/30/2026 |
406.97 |
3 |
228.88 |
Period End |
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01/02/2026 |
251.87 |
10/30/2026 |
229.17 |
3 |
-69.51 |
Period End |
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01/02/2026 |
901.06 |
10/30/2026 |
894.55 |
1 |
-8.30 |
Period End |
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Backtesting Results Disclaimer
Past hypothetical backtest results are neither an indicator nor a guarantee of future returns. Actual results may vary from the analysis. Hypothetical performance results have many inherent limitations and cannot fully account for market factors such as bid-ask spread, slippage, and commission costs. There are numerous other factors related to the markets, which cannot be fully accounted for in the backtesting algorithm, but all of which can adversely affect actual trading results.
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