Improving CAPS, Part Deux
Thanks everyone for the comments and recommendations on my previous blog on Improving CAPS.
It appears that a majority of CAPS members would like to see an alternative "Top Stocks" ranking system. It's less clear whetheror not there's a strong consensus to substitute a volume filter for our current share price and market cap minimums.
Let's start with the "Top Stocks" ranking system.
* We make use of the Top Picks feature on all CAPS member scorecards to create a separate CAPS Member Rating on just your Top Picks. We only score the picks that you have identified as top picks and only for the period in which you'd designated a pick as such; therefore you couldn't simply designate your biggest winners as top picks to game the system.
* We restrict you to having no more than 25 or so Top Picks at any given time.
* You must have 7 Top Picks in order to receive a Top Picks rating.
* We require a 6 month holding period for top picks.
I'm disinclined to support these two rules which were proposed:
* Restrict top picks to stocks -- no ETFs or closed end funds.
* Restrict top picks to outperforms.
Vanamonde correctly pointed out that some will succeed in the Top Picks ranking by making broad sector calls, but these short term "flash in the pan" successes won't be as visible over the long term--when a consistent track record performance will be the keys to being on top of the leaderboard.
Now, let's talk abou the volume filter.
Streetflame pointed out that while the Volume filter got the most votes, it did not reach >50% of total votes. I will drop the option that had the least votes ("Anything goes, rate all stocks") and re-post a poll below for the top two vote getters:
Finally, we discussed some other priorities that I think we will add to our backlog of work:
1. Distinguish the way we represent stocks that have a historical CAPS rating put are no longe ratable--"doghouse" stocks as TSIF called them. Stocks could either lose their historical rating or we could asterisk the "locked in" rating...
2. Provide a new ranking based on rolling 12-month performance.
3. Provide better representation of Sector and Industry leaders--beyond the "Top 5" lists that you can find on our Tags pages.
I'm treating the Top Stocks ranking as the top priority but currently consider all of these items as officially on our backlog--with the exception of the volume filter; we'll see how the second poll results look. I'll give you a better indication timing soon--sometime after Wall-E rolls out. :) Don't hesitate to ask me about status.
Thanks and Fool On!