The power of DVM scores

The DVM Scores are three algorithmic scores – Durability, Valuation and Momentum – that help you assess the quality of a stock.

Go to any stock page on Trendlyne, and you will find three scores on the top ticker, which tell you how high the stock scores in Durability (the strength of its financials and operations) Valuation (whether the stock is cheap or expensive at its current share price) and Momentum (how much buying enthusiasm there is in the market for the stock).

The DVM scoring approach incorporates over 300 metrics to calculate these scores. You can see the backtest results of these scores to judge their effectiveness: High DVM score stocks have consistently over-performed the Nifty500 in the last five years.

Screen Shot 2018-03-30 at 10.43.34 AM

The DVM scores on each stock are freely available. With a subscription you can also filter for high DVM scores via our screeners, building your own queries (for example, Durability Score > 70 AND Valuation Score > 40 AND Momentum Score > 75), or view our prebuilt, highest-return DVM screeners. You can also backtest your strategies.

Building Custom Screener Strategies

Until now, building strategies and backtesting them was possible only via expensive tools for analysts. On Trendlyne however, you have a simple query box in which you can write straightforward filters and models, which can be run and saved immediately:WriteQuery

Once you run a screener, you can also immediately run a backtest to calculate the returns performance.

Read about how to run a backtest on any screener strategy.

3 thoughts on “The power of DVM scores

    1. Hi Mr. Nareng, the exit strategy is when the shares fall below the requisite DVM scores. As you can see from the backtested returns, the performance of this is better than a stop loss or individual target price.

      If you still want to set individual target prices/stop loss yourself, click the + button next to any stock and you will be able to set your own price alert.

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s