
Testing a modern version of the Magic Formula for Indian markets
🚀 Just added a new strategy on our platform: Magic Formula India (ML-Augmented)
This strategy is inspired by Joel Greenblatt’s classic Magic Formula approach — but enhanced with ML-based forward growth signals to identify companies that are:
• Trading at attractive valuations
• Generating strong returns on capital
• Expected to grow free cash flow over the next year
📈 Backtest Snapshot:
• Started in 2020
• ~9x portfolio growth
• CAGR: 43.5%
The idea was to combine value + quality + forward-looking growth signals into one systematic strategy for Indian markets.
Still tracking and researching how it performs in live conditions, but the historical results looked interesting enough to share with the community.
If anyone wants the strategy link or wants to see more details/backtest metrics, let me know in the comments 👇