Quality Minus Junk Xsec Pit
In plain terms
Research-only accepted-time fundamental policy. It is not production-approved or an established return effect.
How it works
incorrect_implementation: four own-history 8Q rank proxies are not AFP 2019 cross-sectional z-of-z composites; the successor ranks one common DECLARED component subset cross-sectionally; it is not AFP's complete profitability/growth/safety/payout model
Data dependencies
- Xbrl fundamental snapshots pit
A data feed this strategy reads, refreshed on its normal schedule.
- Xsec accounting factor signals
A data feed this strategy reads, refreshed on its normal schedule.
- Xsec fundamental formation manifests
A data feed this strategy reads, refreshed on its normal schedule.
- Stock borrow pit
A data feed this strategy reads, refreshed on its normal schedule.
Expected edge
No inherited alpha claim; evaluate this causal policy post-cost against identical-episode controls.
Example tickers where this is likely to fire
Illustrative only, the signal fires based on the live data, not a fixed list.
Related families
Stocks whose gross profitability is improving versus their own past year AND that are trending up over 12 months get a long position; otherwise hold cash. A simplified single-stock take on the Quality Minus Junk idea; the full 4-factor composite is the quality_minus_junk family.
Companies with high gross profit / total assets keep beating peers — it's the cleanest measure of 'is this business actually good'.
Rank companies on two things: how little they spend on capex relative to assets (efficient investment) and how high their return on equity is. Top 25% combos go long, bottom 25% go short. Hold 3-12 months.
A 5-ratio score that flags bankruptcy risk. High score = safe (long); low score = distressed (short). The market-cap version of the original 1968 formula.
Explore Quality Minus Junk Xsec Pit on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.