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Help Applying API pipeline to CANSLIM investing

William O'Neil's investment strategy (CANSLIM: http://www.investors.com/ibd-university/can-slim/) focuses on requiring strict fundamentals, then looking for signs of institutional buying (heavy volume during breakout). It is one of my favorites. I would like to know if the pipeline is robust enough for his fundamental screen, which looks for these qualities:

Each of the last 3 yrs annual earnings are up 25% of previous year’s
Last two Q/Q EPS up 25%
Most recent q/q sales at least 25%
ROE above 20%
Profit in top 20% of industry or above 15%

Example CANSLIM companies (from earlier this year [I discovered them in March]): SUPN, AMAT, WD, HIIQ.

These are quite strict and can be loosened if needed (example: for first requirement, I may allow one down year).

Once I narrow this list, I would also like to know if the technical analysis library can be used to buy stocks when they break through a trading region that has an at least 30% prior uptrend, a maximum depth of 33%, a minimum length of 5 weeks, and a daily breakout volume that is at least 1.5 times that of the 3-month average.

Lastly, I was wondering if it would be possible for me to create my own index of these CANSLIM stocks and use it as a leading indicator of general market direction. William O'Neil claims that these CANSLIM stocks generally lead market behavior.

Any other CANSLIM fans out there interested in helping?

Best,
Need4Greed

3 responses

Hey! I was planning on coding up a CANSLIM strategy too! I just am starting today but would be willing to collaborate on anything that could help you out.

I'll keep you updated with progress on my end.

All the best,

Ian

I’m just starting reading O’Neil’s book. Have you guys made any progress? I’d be interested to help too

I put my project on the back-burner for now, did not make too much progress before other stuff took precedent. All I started was coding the 52 week high filter. Would love to hear your progress though! I will probably pick this back up in the future.