Mechanical Investing
Buying and selling stocks according to a screen based on predetermined criteria, usually ranking stocks using relative strength or momentum as the central indicator, but other indicators can also be used.
Investopedia Commentary
Investors might buy the top five to 10 stocks with this type of screening process. This strategy tends to be successful during bull markets. Proponents of this strategy say that using the screen removes emotion from investing.
Related Links
Getting To Know Stock Screeners
Basics of Trading Systems
See also: Momentum, Relative Strength, Stock Screener