Checklist Fred - Ultimate Pro V6.6

🇬🇧 ENGLISH VERSION (Complete Guide)

Fred’s Checklist - Ultimate Pro V6.2



1. The Philosophy: "Quality at a Fair Price"
This indicator is not a "miracle" signal generator. It is a multi-criteria scoring system that merges the three pillars of investing: Financial Health, Valuation, and Technical Timing.

The goal is simple: To select only exceptional companies that are "taking a breather" (moderate RSI) before a potential trend resumption.

2. How the 10 Criteria Work (The Score)
Each criterion is worth 1 point. A score of 8/10 or higher indicates a favorable statistical alignment.

I. Fundamental Pillar (Quality)
Revenue/EPS Growth: Proof that the company is gaining market share and generating increasing profits.

Net Margin: Filters for profitability. Companies that retain a significant portion of their revenue are more resilient.

ROE (Return on Equity): Measures management's efficiency at generating profits from shareholders’ equity.

Debt/Equity: Ensures the company is not over-leveraged relative to its own capital.

Free Cash Flow (FCF): The company must generate "hard cash" and not just accounting profits.

II. Valuation Pillar (Price)
P/E vs. Index: The script compares the stock's P/E ratio to its market average (S&P 500, NASDAQ, or TSX). This prevents "overpaying" for a stock relative to its peers.

III. Technical Pillar (Timing)
SMA 50 & 200: The price must be above these moving averages to confirm a healthy long-term uptrend.

RSI [35-55]: This is the "Comfort Zone." We look for stocks that are neither overheating (RSI > 70) nor in a freefall (RSI < 30).

3. Customizable Settings (The Gear Icon)
The tool is fully customizable via the settings panel to suit different investor profiles:

Threshold Adjustments: Modify minimum Margins or ROE targets based on sector requirements.

RSI Zones: Expand or narrow the entry window (e.g., 40-60) depending on your risk tolerance.

Index Updates: Manually enter the current average P/E for the S&P 500, Nasdaq, and TSX. The script automatically detects the stock's origin.

4. Market Context Behavior
Market State Indicator Impact Pro Tip
Bull Market Many stocks will hit 8/10 or 9/10. Be highly selective; aim for 10/10 to avoid "bubble" valuations.
Bear Market Scores drop (often < 5/10). The indicator keeps you safely on the sidelines.
Sideways (Range) RSI becomes the key factor. Look for a return to the 35-55 zone paired with strong FCF.


5. How to Read the Results
10/10 (Green): Rare. Signals a total alignment of all stars.

7/10 to 9/10 (Orange/Green): Interest Zone. Identify the missing point (often a "N/A" data point or an RSI slightly out of range).

Below 7/10: Too many compromises. It is usually better to move on to the next ticker.

Disclaimer: This indicator is for educational and informational purposes only and does not constitute financial advice. Trading involves significant risk of loss. Past performance is not indicative of future results. Always perform your own due diligence before making any investment decision.











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