Our Methodology

The complete two-gate framework — ROEV fundamental valuation combined with tactical mean reversion signals. Gate 1 uses our proprietary ROEV formula (ROE × P/E × Book Value) to identify stocks trading at a Discount Ratio of 0.85 or below — a 15% or greater discount to demonstrated earnings power. A five-question Value Confirmation Diagnostic separates genuine value from value traps. Gate 2 applies the RC Tactical Trading System — five technical indicators read as mean reversion gauges: Bollinger Bands, MFI, RSI, MACD, and Slow Stochastics. Four of five must confirm before a full position. The two-gate requirement prevents both buying damaged goods at a discount and catching falling knives in fundamentally sound companies. For the full methodology, download our free guide.