How to Backtest Yourself
All screens were created and backtested using StockScreen123, an outstanding service if you are serious about creating strategies and testing ideas.
Quick Screen Summary
A stock screen based on Benjamin Graham’s stock selection criteria consisting of 10 points. Results show that just four out of the ten criteria produce the best performance.
Criteria 1: An earnings-to-price yield at least twice the AAA bond rate
Criteria 2: P/E ratio less than 40% of the highest P/E ratio the stock had over the past 5 years
Criteria 6: Total debt less than book value
Criteria 7: Current ratio great than 2
Read more: Benjamin Graham stock selection backtest