Hi everyone,
I'm working on a trading strategy similar to moving average crossovers but using fundamental indicators. It generates a numerical indicator to reflect the fundamental value of a stock. I calculate "fundamental averages" for long-term (100 periods) and short-term (50 periods) metrics like EPS, P/E ratio, revenue growth, free cash flow, debt-to-equity ratio, and dividends. The idea is to buy when the short-term average crosses above the long-term average and sell when it crosses below.
I normalize these parameters to make them comparable and assign weights to each one, but I'm confused about the best way to implement this. Any advice or insights would be greatly appreciated! Thanks!
I'm working on a trading strategy similar to moving average crossovers but using fundamental indicators. It generates a numerical indicator to reflect the fundamental value of a stock. I calculate "fundamental averages" for long-term (100 periods) and short-term (50 periods) metrics like EPS, P/E ratio, revenue growth, free cash flow, debt-to-equity ratio, and dividends. The idea is to buy when the short-term average crosses above the long-term average and sell when it crosses below.
I normalize these parameters to make them comparable and assign weights to each one, but I'm confused about the best way to implement this. Any advice or insights would be greatly appreciated! Thanks!