Since I was trying to learn from Dan’s spreadsheets this morning, I can give an intro. Please pardon if I am repeating lot of what you might know.
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Dan starts with a list of factors that might be of use is devising good ranking systems.
Some of these are simple factors such as ROE%Q.
Some of them are complex formulae, such as Return on Total Capital = Inc before tax + interest exp divided by assets and liabilities. -
He runs Single factor ranking system performance for each factor. That is, he first creates a ranking system with one factor or formula at a time. Then, using Port123 Ranking system performance page, with typical settings such as Price > 3, buckets 20 and Universe: All stocks, he runs the performance test.
The page gives a graph of the 20 bucket returns and at the bottom it shows the return in each bucket as the number. -
He grabs these 20-bucket returns and inserts into the spreadsheet row against the formula.
This is the data collection phase, and Dan’s edge upto now is
his patiently having collected the list of potential formulae and his ability to use his software-testing tool to automatically run these single factor sims and collect the data into an excel spreadsheets.
At this point, go to one of these spreadsheets and click on the first worksheet (the one with only factor list and 20-bucket data)
(This is titled: Last 2 years Data)
Now begins the real genius work in MS Excel and his edge in
knowing what to look for and how to make excel look for it.
This is in the second worksheet.
(This is titled: Last 2 years Charts)
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First he makes sure the data is not missing too many bars.
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How to judge whether a factor is good?
The returns from the top 3 buckets should be high.
The returns from the bottom buckets should be low.
In other words, the ranking results should show a
clear slope and actually, a steep slope.
This is where Dan ‘excels’ (pun intended 
He measures how good the top 3 bars are and how steep and smooth the slope of the result line is and ranks each factor
on each of these measures.
Finally he combines these and gets a total ranking for that factor.
And marks factors if they are in the top 10, 25, 50 or 100.
Please note that each of the top 10 factors produces at least
an average of 20% annual return in the top 3 buckets.
There it is: high power factors and formulae ready for you to combine and creating ranking systems that are guaranteed to produce at least a 25% average annual return.
Very few people have clarity of ideas and goals. These people come across tools and resources they can use to meet their goals.
Very few of these have an eye for meticulos detail and persistent work.
Far fewer of these are willing to share the results of superior ideas and their personal hard work without too much in return.
May God bless Dan!
OK, if you dont think there is God, let the Force be with Dan.
I guess, it already IS.
Ravi