What is Rescreen?
Rescreen is a powerful feature within Double that helps keep your investment strategies dynamic and aligned with your chosen filters.
Note, this feature only apply's to Filter Based strategies, which are built off of a screens against our investable stock universe. Double has some pre-created filter based strategies, or you can create them yourself from the Research tab under Filter Mode. They all contain the "Filter Based" Tag on their Strategy Detail page.
Think of the rescreen feature as a periodic "refresh" for your strategy, ensuring it continues to reflect the market conditions and criteria you've defined.
How Does Rescreen Work?
Filter Re-evaluation: At the frequency you choose (e.g., quarterly, monthly, annually), Rescreen automatically re-runs the filters that form the basis of your investment strategy. This happens before the market opens on the scheduled day.
Dynamic Portfolio Updates: Based on the results of the re-run filters:
Stocks that no longer meet your filter criteria will be removed from your strategy.
Stocks that now meet your filter criteria will be added to your strategy.
Automated Adjustments: Double handles the buying and selling of these stocks to reflect the updated strategy composition. You don't need to manually execute any trades.
Why is Rescreen Important?
Keeps Your Strategy Relevant: Market conditions and company fundamentals change constantly. Rescreen ensures your strategy adapts to these changes, rather than remaining static and potentially outdated.
Maintains Filter Adherence: Your investment strategy is built on specific filters. Rescreen guarantees that the stocks in your portfolio consistently meet those criteria over time.
Automates Portfolio Management: Rescreen takes the work out of regularly reviewing and adjusting your portfolio, saving you time and effort.
How to Control the Rescreen Cadence:
You have complete control over how often Rescreen runs for each of your strategies. You can adjust the frequency at any time. Here's how:
Go to the specific strategy you want to adjust.
Find the "Rescreen" setting (it will likely be displayed with its current frequency, e.g., "Rescreen: Quarterly").
Click on the setting (or an associated "Edit" or "Change" button).
Select your desired frequency from the available options (e.g., Monthly, Quarterly, Semi-Annually, Annually, Never).
Save your changes.
Rescreen Frequency Recommendations:
While you can choose the frequency that best suits your needs, we generally recommend quarterly rescreening for most strategies. This provides a good balance between staying up-to-date with market changes and avoiding excessive trading activity. However, the best frequency can depend on several factors.
Highly Volatile Strategies: Strategies focused on rapidly changing sectors or factors (e.g., momentum strategies) might benefit from more frequent rescreening (e.g., monthly).
Long-Term, Passive Strategies: Strategies with a long-term focus and less sensitivity to short-term fluctuations (e.g., value investing) might be fine with less frequent rescreening (e.g., annually).
Strategies based on fundamental data: If the filter utilizes company fundamental data, a good cadence to pick is quarterly, as this data is updated at this rate.
Important Considerations:
Rescreening and Taxes: Be mindful that Rescreen can trigger trades, which may have tax implications.
Rescreening vs. Manual Adjustments: You can always make manual adjustments to your strategy outside of the Rescreen schedule. Rescreen is designed to be an automated process, but it doesn't prevent you from making your own changes, either by manually re-screening your portfolio or updating the portfolios filters.
No Rescreening Option: Choosing a Rescreen schedule of "Never" will ensure that the stocks will not change unless manually changed.
In Summary:
Rescreen is a valuable tool for maintaining dynamic and effective investment strategies within Double. By understanding how it works and setting the appropriate cadence, you can ensure your portfolio remains aligned with your goals and adapts to the ever-changing market landscape. If you have any further questions, please don't hesitate to contact our support team.