On Friday I detailed AAII's Tiny Titans stock screen. Using the beta stockscreen123 I backtested the Tiny Titans portfolio only when the Russell 2000 was above its 200 day moving average. The goal is to reduce potential drawdowns by only investing in the strategy when the overall market is in a long term uptrend. By adding this simple rule, the Tiny Titans screen avoided some of the significant drawdowns in 2007 and 2008. Other potential trading strategies may work better on the individual companies in the Tiny Titans list, such as the one I detailed in-depth here which involves placing stop losses on individual positions.
The 8 year performance of the strategy results in a $100 investment turning into $349.70 versus $137.30 in the Russell 2000 (dividends excluded) when rebalanced every 4 weeks and excluding slippage/commissions:
A 5 year investment turned to $138.30 versus $100.20 in RUT.
A 3 year investment turned into $84.10 versus $77.30 in RUT. It suffered a large drawdown in August/September 2008 and October 2007 when the Russell 2000 was briefly above the 200 day moving average but suffered large negative months.
The current list of stocks matching the criteria are:
| Ticker | Name | Last | Free Trend Analysis | MktCap |
| VVTV | ValueVision Media, Inc. | 3.93 | Here | 127.08 |
| ROIAK | Radio One, Inc. | 3.3 | Here | 180.6 |
| LEE | Lee Enterprises, Incorporated | 3.8 | Here | 170.51 |
| ATSG | Air Transport Services Group | 2.42 | Here | 153.57 |
| LNET | LodgeNet Interactive Corp. | 5.99 | Here | 135 |
| NAVI | NaviSite, Inc. | 2.89 | Here | 107.81 |
| CMRG | Casual Male Retail Group, Inc | 3.17 | Here | 149.51 |
| LBY | Libbey Inc. | 10.32 | Here | 156.41 |
| MGPI | MGP Ingredients, Inc. | 7.6 | Here | 126.73 |
| BIOF | BioFuel Energy Corp. | 2.8 | Here | 95.29 |
| SPCHA | Sport Chalet, Inc. | 2.02 | Here | 28.53 |
| SALM | Salem Communications Corp | 4.92 | Here | 116.48 |
| IHR | Interstate Hotels & Resorts, | 2.25 | Here | 72.35 |
| PXLW | Pixelworks, Inc. | 3.4 | Here | 45.56 |
| BONT | The Bon-Ton Stores, Inc. | 8.44 | Here | 156.63 |
| CVGI | Commercial Vehicle Group, Inc | 4.99 | Here | 113.51 |
| BELM | Bell Microproducts Inc. | 4.57 | Here | 145.76 |
| KV.A | K-V Pharmaceutical Company | 3.08 | Here | 153.84 |
| IEC | IEC Electronics Corp. | 6.13 | Here | 54.8 |
| TXIC | Tongxin International Ltd | 8.15 | Here | 100.32 |
| SBSA | Spanish Broadcasting System I | 0.74 | Here | 48.06 |
| KTCC | Key Tronic Corporation | 5.62 | Here | 56.71 |
| NXST | Nexstar Broadcasting Group, I | 4.39 | Here | 124.81 |
| WILC | G. Willi-Food International L | 6.96 | Here | 71.46 |
| ARTX | Arotech Corporation | 1.89 | Here | 27.2 |
Disclosure: No Positions
