Aquater

Outperformers During Declines Not Outperforming During Subsequent Recoveries

Johnson's comment is insightful. IBD, however, also is out of market right now. They have been in and out of market this year quite frequently and, since they never report their performance, it is hard to tell how much money their approach has made.
To be fair, they also recommend leaders that break out in the formation called cup and handle, which avoids stocks that just outperform during corrections and bear moves. Still, when the downturn is over and they are back in the market after a rally is confirmed, I guess some current outperformers will be included in the cup-and-handle breakouts.
IBD approach also always recommends selling any stock that goes down by eight per cent below purchase price. Overall, I am curious if there is any study of IBD's performance. AAII does have a screen for the O'Neal approach but it is an overly simplified version. IBD's approach, on the other hand, is overly complex and highly subjective. It also necessittes reading their paper daily! I've found it hard to follow their approach solely through their basic ideas and strategies because in the paper they always come out with hidden explanations not unlike how companies come out with earnings surprises.