A breakdown of Boosted.ai's proprietary stock-rating system.
Boosted.ai’s proprietary stock rating is given based on how stocks are expected to perform relative to all the other stocks in a strategy’s universe. Performance is determined based on the bullish and bearish signals generated from the learned variables and patterns.
Performant strategies will have a good spread in excess return between Quantile 1 (4-5 Star Stocks) and Quantile 5 (0-1 Star Stocks). Generally, Quantile 1 stocks are good long candidates while Quantile 5 stocks are good short candidates.
Stock Ratings and Quantiles
- Quantile 1 (4-5 Star) - Top 20% of stocks in the universe.
- Quantile 2 (3-4 Star) - Top 40% of stocks in the universe.
- Quantile 3 (2-3 Star) - Average stocks in the universe.
- Quantile 4 (1-2 Star) - Bottom 40% of stocks in the universe.
- Quantile 5 (0-1 Star) - Bottom 20% of stocks in the universe.