The AAII stock screener includes the required data for the Tiny Titans investing strategy. As they do with every screen included with the database, AAII includes a brief description of the strategy.
The Tiny Titans require only market capitalization, price/sales ratio, 52 week price appreciation (or relative strength), and average trading volume. Only stocks from the AMEX, NASDAQ and NYSE markets are used – the OTC market is excluded.
In Stock Investor Pro, select the data fields from the following categories in the Field dropdown menu:
Although we set the screen up with the average trading volume for the last 10 days, other volume selections are a matter of individual preference. Stock Investor Pro also offers the option of average dollars traded. The 52 week price change (it is a percentage) could be used instead of the 52 week relative strength.
There is one small issue to address with the Stock Investor Pro database.
There is no “top number” so running the screen does not necessarily result in 25 stocks. There may be more than 25 or fewer. When running the screen, adjust the “Compare To” value for relative strength until there are at least 25 stocks.
The above shows a basic screen with some modifications from the original.
After screening against the current database, it will be necessary to go to the view (results) to identify the 25 with the best relative strength. NOTE: This means that you must have selected the relative strength in the view.
At the view, sort the results by relative strength. The Tiny Titans strategy published by O'Shaughnessy selects the top 25 stocks by one year relative strength and holds them for a year.
The exit strategy is the one year holding period. At the end of a year (or whatever works for tax purposes), the screen is run again to select for the following year.
The Stock Investor Pro implementation of the Tiny Titans strategy included with the database is often one of the best performing strategies of the 50+ pre-defined stock screens offered by AAII.
All AAII investing strategy screens run with a monthly refresh. This is different than the published refresh rate for the Tiny Titans. The AAII implementation of Tiny Titans also eliminates any ADRs and does not require minimum liquidity. This is important to keep in mind if you check the results on the AAII site.
It is possible to back-test screens with the AAII database since a point in time copy of all data is available on a monthly basis as far back as 2003. The back-testing is clumsy but it is possible. The back-testing feature and the annual cost ($198 per year for AAII members) make this the best stock screener of the fee-based stock screeners for Tiny Titans.
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