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Tuesday, July 18, 2006

The AAS Rating Score

The AAS Rating Score is the foundation of our analysis and one of two components that sets Alpha Advisor Service, LLC apart from other subscription-based services. AAS utilizes a weighted Alpha which is adjusted for price persistence and volatility using proprietary formulas and software. Similar to normal alpha rankings, equities with higher AAS Rating Scores are preferred over lower scores. After rating the security, a compound trading rule is applied that takes into further consideration short-term trend analysis. In order for a security to be an “AAS Recommended Buy”, the AAS Rating Score must exceed a pre-determined level and it must be subjected to further confirmation through two independent technical indicators. If the AAS Rating Score is not confirmed through technical analysis, there is no Buy recommendation.

Utilizing traditional alpha can be a valuable tool when comparing investments, but with advanced mathematics and software AAS has transformed alpha into a much more dynamic analytic.


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