Star Rating: Every stock is unpredictable (at least in short term). However, some of them are more and others are less unpredictable. Being investor we always have the desire to invest in stocks which return better and which are more predictable. Keeping in view, value return and predictability as key factors, we can segregate all stocks in four categories.

Poor return - Highly unpredictable (least desired e.g. Blue Star Ltd, Educomp etc.)

Poor return - Highly predictable (moderate desired e.g. Eros International, VA Tech etc.)

Excellent return - Highly unpredictable (moderate desired e.g. Geometric Ltd, Rasoya Proteins etc.)

Excellent return - Highly predictable (most desired e.g. Jindal South West, Cadila Healthcare etc.)

(Example stocks are based on performance between time period December 31, 2008 - December 31, 2013) At Safe Trade, we have solved this problem for investors by assigning star rating based on a mathematical model. 5-Star is the highest and it means most desired. Stocks in this category have record of giving very good return (40% and above p.a.) and are most likely highly predictable. As star rating goes down, it moves down from most desired to least desired scale of investors. Predictability factor is measured on the basis of Rule-X, which our APS system uses to alert investors.

Users of Auto Mode do not need to worry much about the star rating system. Auto Mode always selects stocks having at least 2.5 star rating (it means probabilistic return is greater or equal to 25% p.a.) Star Rating and Auto Suggestion/Auto Mode features are only available to paid customers Star rating of various stocks are visible to paid customers at Stock Review as well as Portfolio Builder pages.

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