Trading and Investing Algorithms developed by Michael Markowski

 

  • Free Cash Yield.   This algorithm was developed in 2003 and was used by Mr. Markowski to find two of the most undervalued companies in the market based on their Free Cash Yields.   The share prices of both companies multiplied by 20 times. The video “What is a 50% Free Cash Yield” on the Startups and microcaps research page at BullsNBears.com is highly recommended because it explains the methodology that Mr. Markowski uses to develop algorithms.

 

  • Bull & Bear Tracker.  This algorithm was originally developed in 2016 by Michael Markowski to predict market crashes due to his concerns about negative interest rates causing a crash of the world’s markets.  To develop the predictive crash algorithm which predicted the Brexit market crash in 2016, Mr. Markowski researched the crash of 2008 and the bursting of the dotcom bubble in 2000.   After Donald Trump was elected as US President interest rates increased significantly.   Mr. Markowski mothballed the algorithm since the probability of a crash had lessened.  After the market crashed for the first time since Donald Trump was elected in February of 2018, Mr. Markowski brought the algorithm out of retirement.  He adjusted its signals so that it could utilize ETFs to trend trade the S&P 500.

 

  • OPS Ratings.  This algorithm which was developed by Mr. Markowski in 2002 monitors and rates the operational-cashflow per share (OPS) for all publicly held companies.   The algorithm automatically calculates the OPS for a company and assigns it one of eight numerical (1 through 8) ratings.  The companies with the lowest OPS ranking of “1” have the lowest risk.  Conversely, those assigned an “8” have the highest risk.  The chart below depicts that separate portfolios containing all of the OPS 1, 2, and 3 Rated companies outperformed the S&P 500 from 2002 to 2010.