Joel Greenblatt Magic Formula. I always wanted to make this.
The Indicator shows 3 values.
ROC,EY,SUM.
ROC= Return On Capital.
EY=Earnings Yield
SUM= Addition of Two.
Formula:
ROC=EBIT / (Net Working Capital + Net Fixed Assets).
EY = EBIT / Enterprise value
Enterprise Value=(Market value of equity + Net Interest-bearing debt)
To implement the strategy,...
This one is a very random indicator but with an excellent concept. Unfortunately, I don't know much about the origin of this indicator or who made it. Still, the first appearance was around 2004 on a Meta Trader forum. There are a lot of variations of the J_TPO indicator. One of them is the J_TPO Velocity. The difference from the original version is that it uses...