CANSLIM doesn't work ?

Discussion in 'Strategy Development' started by Kicking, Nov 23, 2006.

  1. The dUNCAN hURST CANSLIM sELECT Growth Fund is down 4% YTD in a raging bull market where stocks are going up left and right. But still it ain't easy to catch those big winners especially using CANSLIM !

    Newbies, draw your own conclusions...
  2. Another 'dangerous cult' like GROB?? :D
  3. I got to say my trading got much better when I stopped buying IBD.

    I think the sell discipline is about all CANSLIM has to offer and all that rag points you towards is false breakouts and heard mentality. ~ Stoney
  4. The IBD should only be used as a guide. I've heard a lot of people also use the IBD for shorting. That is something to consider. If a big buyer or fund gets in a rec. stock and shorts it by a huge amount, it will be weighed down until there is enough momentium to break the shorts position.
  5. Who says they're using CANSLIM? The size float that CANSLIM prefers pretty much precludes the involvement of funds.

  6. ehsmama


    CANSLIM works. I only use earnings momentum + Technical aspects like new highs etc. It has very good results.
    Also I think Looking at 50 day MA for the indexes gives better results than looking at Distribution days for TOPS
  7. kowboy


    I never got it to work for me.
  8. I believe CANSLIM works a LOT better when the value of the Standard And Poors 500 index is near the low value of the year and not the highest value of the year.
  9. Last time I checked (years ago) CANSLIM guidelines had no risk rule or position sizing rule. My modeling suggests the % risk used for a trade is probably more important than the trading method used.

    A simple exit rule that might work well for CANSLIM stocks might be to hold until price decreases below the value of the 100 day moving average.

    It might not be possible to back test these kinds of stock price histories because some of them have less than two years' data. For some purposes there is not enough data to analyze.
  10. ehsmama


    You are mistaken,
    It has both
    risk rule = 7% stoploss
    Position sizing Rule = 8-10 Positions for any account
    #10     Nov 23, 2006