Mechanical investing

Mechanical investing
A mechanical investment strategy is one that follows a fixed set of rules to make buy and sell decisions. Mechanical strategies exclude any exercise of human judgement, making them less subjective.

Mechanical investing
Mechanical investing is the selection of stocks for investment using predetermined, numerical criteria.

Mechanical Investing
Buying and selling stocks according to a screen based on predetermined criteria, usually with the help of technical indicators such as relative strength or momentum.

I'm not a big fan of any mechanical investing strategy simply because a.) most people (including myself) have a difficult time sticking to it b.) the data supporting the model can be flawed.

The "Foolish Four" is a discredited mechanical investing technique that, like the Dogs of the Dow, attempts to select the member stocks of the Dow Jones Industrial Average that will outperform the average in the near future.

See also: Vesting, Stock, Investing, Investment, Yield