A better way to invest

Invest intelligently

Formula Stocks offers a better way to invest. We forecast which stocks will go up, before they go up. +90% of the time we have made such an estimate, it has proved a successful long term investment. You simply buy these stocks in your own account.

Investing using these estimates, cumulative returns since 2009 have been +746%* vs. the S&P500's 225%. Our Entry portfolio returned +12.91% in 2017 and +69.38% in 2016. Powered by Artificial Intelligence forecasting, this performance strongly exceeds the 6-7% average returns typically expected from the stock market.

Join us to better your returns, save on fees, and moderate your risk. Sign up for a 30-day free trial without any obligations.

*Past performance is not neccesarily indicative of future results.

90%

entry

59%

Market

Winners in %

What is it?

We offer stock recommendations: what to buy and when to sell. With an unusual twist offering higher expected reward, with lower expected risk.

Included is a model portfolio designed to enhance wealth through intelligent portfolio management. Use it to better your investment performance.

Using Formula Stocks is easy. After logging in you will find recommendations for stocks trading on all US stock exchanges including large international stocks. These can be traded from anywhere in the world, through any bank or broker you already use.

You can use these individually or replicate our model portfolio. Simply follow the instructions, and you will be handling your own account in no time.

Performance

Unleveraged returns since 2009, compared to the Dow Jones Industrial Average.

Every percent matters

Assume that you would like to get an 18% yearly return. After all, who would not? Through the effects of compounding this would be much, much more rewarding than the standard 6% you normally expect from stocks. Example in a tax free account:

$1,000 invested with an 18% yearly return over 30 years.

$143,370

$1,000 invested with a 6% yearly return over 30 years.

$5,743

18% in this example is 25 times better than 6%. Compounding is an exponential function, that makes time work for you.

Certainty of any future rate of return is impossible, since the future has not happened yet. Looking back, our Entry product has produced +24% p.a. since inception in 2009. That amounts to +746.58% over a 9 year period, about 3x as much as the stock market indices in the same period.

First month is on us

If you decide Formula Stocks isn't for you - simply cancel online at any time without obligations.

$49.99 monthly after your free 30 days

What to expect

When you first buy a stock, already within 30 days, 62.16% of our recommendations statistically see a price increase. Your mileage may vary and depend upon current market conditions.

A typical holding period is 2 years during which price, on average, gradually come to reflect the business prospects we have projected. After which statistically 90% will have seen a price increase.

Our win-ratio of 90% compares favorably to 59% for a typical basket of stocks.

Using Formula Stocks gives you an edge. Use it consistently, diversified, for years: Odds accumulate in your favour, and you will likely outperform most competing investment methods.

Latest portfolio sales:

NameBought atSold atReturn
Foot Locker Inc. (FL)$34.50$56.4063.50%
Insight Enterprises Inc. (NSIT)$25.92$55.14112.73%
America's Car-Mart Inc. (CRMT)$39.70$83.45110.18%
World Acceptance Corporation (WRLD)$50.62$118.61134.29%
Usana health science (USNA)$57.10$131.95131.07%
Universal corp. (UVV)$66.10$59.80-9.54%

Pilot program

Formula Stocks initiated a 3-year pilot program at launch. Performance data was recorded under real-time market conditions, and financial results reviewed by a state-licensed auditor. We recorded a return on equity employed to sustain securities trading of +78.94% in 2009, +44.64% in 2010 and +17.51% in 2011.*

*Past performance is not neccesarily indicative of future results.

Year 1

+78.94%

Year 2

+44.64%

Year 3

+17.51%

Long-term performance

Log scale graph 1970 - 2018. How $25,000 invested would have evolved over time

Historical numbers are based on backtested data. Since our 2009 launch we have observed similar results in real time. See our ToS for details.

Statistics

90%

entry

59%

Market

Winners in %

Historically, 88-92% of our recommendations have been successful. If you had bought random high-quality stocks, only approx. 59% of these would have earned a positive return. A staggering difference.

36

entry

12

Market

Outperforming years

Recommendations and model portfolio are based on timeless and proven investment principles, mathematical probabilities, and sound logic. The model portfolio has outperformed the S&P 500 in 75% of all years.

+65%

Gain

-18%

Loss

Avg. gain/loss per stock

90%

Wins

10%

Losses

Win/loss ratio

We specialize in high-probability investments – a high probability of long-term gain combined with a low probability of loss. We prefer to buy good businesses at fair prices with a margin of safety, shielding us from some downside, while enjoying the upside of owning businesses that earn a meaningful return on capital.

How we beat the market

Formula Stocks uses a combination of many specific technologies developed over a 15- year period to do as Mark Twain originally suggested:

”Buy good quality common stocks that go up. If they do not go up, do not buy them”. While Twain said it tongue-in-cheek, it encapsulates Formula Stocks' mission.

We identify stocks that go up, before they go up, with a 88-92% probability of being correct. We do this using novel technology developed in-house, including state of the art artificial intelligence. A few of these concepts are:

  • Artificial Intelligence – the capability for an algorithm to learn from experience, and reason based upon it.
  • Quantitative business analytics – analyzing business models using big data.
  • Growth projection – in-house methods used to project the future non-linear growth of a business.
  • Margin of safety principles – safety seen as a prerequisite to intelligent investing as pioneered by Benjamin Graham.
  • Valuation technologies – novel methods for calculating the intrinsic value of a business.
  • Intelligent Investment Technologies – approx. 100 different methods for outperforming the market developed in-house
  • Alpha prediction – in-house method which estimates the future excess return from a stock.
  • Portfolio management technology – software for optimizing risk/reward characteristics of a portfolio.
  • The scientific method – everything is based on the central method upon which a thesis can be formed, tested, and refined.

Formula Stocks offers leading-edge technology for modern stock selection and portfolio optimization. If you want to know more, please see our brochure.

Risk management

Formula Stocks moderates risk, and we believe it yields a lower degree of risk than passive stock market investments. We prefer situations where the perceived reward is significantly larger than the perceived risk, or we have some form of margin of safety.

One way to measure the risk of using Formula Stocks' Entry product, is to look at its win/loose ratio: +90.44% of all historical investments have been successful. This is highly unusual and compares to 59% elsewhere.

Another way is the so-called Gain-to-Pain Ratio, which measures exactly what the name indicates. It is 1.318 for Entry, which indicates far more gain than pain.

The Sortino Ratio is yet another way to measure risk. It is 3.0169 for Formula Stocks Entry, indicating high reward and low risk.

We can also examine the average gain from a winning stock which is +65.97%, while the average loss from a losing stock is only -18.32%. Add to this that Entry also wins 90.44% of the time and only loses 9.56% of the time. This leads us to a mathematical expectation of (0.90 * 65.97) - (0.10 * 18.32) = +57.54%. Taking an average of 2.2 years we correct for this to get an expected annualized return of +26.15%.

Corporate profile

About us

Formula Stocks develops cognitive computing technologies since 2003 designed to achieve above-average performance in equity markets. Technology includes deep learning, business analytics, decisionmaking, probability estimation, and prediction technologies. Product suites can be used as a standalone tool to assist investors, or operate as autonomous decisionmakers. Artificial intelligence fund management solutions capable of portfolio construction, portfolio management & risk/reward management.

Address: Formula Stocks ApS | Ribe Landevej 39, DK-6100 Haderslev. Denmark

Contact us at: info@formulastocks.com

Executive team

Thomas Lyck

CEO

Mark Lyck

COO

Marie Lauritzen

CHRO

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