Jim Cramer is a controversial person. Nearly every day he’s recommending a dozen or so stocks with unshakable confidence as if he knows the future. Many of those recommendations, if followed directly, do not end up very well, to say the least.

We wanted to do a performance study for his recommendations to see how bad/good they are. We figured that holding for just one day may be as much as you can afford.

We took all the data from MAD MONEY STOCK SCREENER, a website that tracks all the recommendations made since 2016-04-18. Every day after the show they update it with a new set of stocks mentioned in the show.

The Setup

There have been 13,314 buy recommendations made by Cramer since 2016-04-18. Every day we’re taking $10,000 and putting them into all the buy recommendations distributing the amount equally among all the stocks recommended. Buying at 9:30 am the next day after the show and selling by EOD.

To make it a more complete assessment, we ran a couple of different variations:

  • No Stop Loss
  • 10% Trailing Stop Loss
  • 5% Trailing Stop Loss
  • 4% Trailing Stop Loss
  • 3% Trailing Stop Loss
  • 2% Trailing Stop Loss
Example Setup of a Backtest

The Results

Up in a good year and down in a bad year – looks pretty average… Note that 2016 only has data starting from the end of April so it’s not complete, similar to 2022 it’s up to March.

2016 – 2022 Results

Beyond the Results

Since the results were not impressive, we decided to do one more test and hold a bit longer until the next day open. Buying at 9:30 am the next day after the show and selling at 9:30 am on the next trading day. A much better play this time.

Holding 1 day + overnight (until the next day open)

We’re not affiliated with CNBC or Jim Cramer in any way and this study is just a quantitative analysis of the recommendations.