Value Investing Rules: The Marwood Value Model
Discover 10 simple rules for investing in the stock market. A quantitative value investing system with excellent historical returns.
Update January 2020
Please be informed that this strategy (like other value strategies) has under-performed significantly in recent years. While it could rebound there is a reasonable probability that the system is no longer effective. As a result we are no longer trading or following this strategy but may revisit it in 6 months time. The course will be left open since it contains some useful info for strategy development and using P123.
The course was great. It had a lot of great ideas and example of things I haven't thought of before or done. I started to paper trade the system and It has shown some very good success, I am about to go live with it. Thank you Joe.
-- Bob Reed
The Marwood Value Model is a quantitative value investing strategy that I developed to find cheap stocks. It is based on 10 simple rules and can be deployed on it's own or as part of a diversified portfolio of strategies.
Whether you're an experienced stock market investor or you're looking to buy stocks for the very first time, this course will show you a hassle-free way to find deep value investments.
Quantitative Value Investing is is a form of value investing that analyzes fundamental data such as financial statements, economic data, and unstructured data in a rigorous and systematic manner.
The Marwood Value Model is based around 10 key rules for buying and just one rule for selling.
Of course, the rules are not simply plucked out of thin air. They are grounded in the principles of successful value investing and take their cues from successful value investors such as Warren Buffett, Benjamin Graham, Peter Lynch and others.
The nature of this strategy makes it both highly flexible and easy to use. Entries and exits are made every two weeks, which means this is another stock market strategy that requires very little maintenance.
It is the perfect strategy to combine with another system, such as a trend following system, a growth investing system, or even a simple buy-and-hold approach.
Impressive Historical Performance
Using the latest analytical software, I take the 10 value investing rules and I apply them to historical stock market data. The results are recorded live and show an impressive 19 percentage point outperformance against the benchmark S&P 500*.
Over the last 15 years, this strategy was shown to produce annual returns of 21.50% (red line below) with a maximum drawdown of just 30% and a Sharpe ratio of 0.90.
Meanwhile, the S&P 500 (blue line below) has only been able to return 2.28% annually in that time.
Joe Marwood is an independent trader and investor specialising in financial market analysis and trading systems. He worked as a professional futures trader for a trading firm in London and has a passion for building mechanical trading strategies. He has been in the market since 2008 and working with Amibroker since 2011.
StartGoals of the course. (2:18)
StartSome theory & why you need investing rules. (2:10)
StartTools we will be using. (3:29)
PreviewEvidence of value investing and principles. (2:04)
StartOur benchmark. How to measure performance. (4:32)
StartThe S&P 500 is a trading system. David Harding from Winton Capital speaks.
PreviewBenjamin Graham's investing rules.
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Income Grower is a monthly investing strategy that purchases cash-rich, dividend stocks. It utilises a clever hedging mechanism and exhibits a very low drawdown.