A Stock Screen Using 2021, Price Amplitude, and Concentration Criteria

Summary

The document describes a stock-selection idea that combines a 2021 date filter, a price-amplitude threshold, and a market-concentration measure. It gives formula and Python examples, but the conditions are inconsistent: the written description says concentration should be below a threshold, while the formula uses a compound condition that can admit values outside the stated range. The Python example also applies different inequality directions and uses a price-range calculation that may not match the stated amplitude rule.

The article characterizes the screen as oriented toward short-term trends and cautions that it may neglect company fundamentals, encourage reactive trading, and rely on a date-related factor whose relevance is unclear. It recommends considering fundamentals, market trends, valuation, and risk management. No backtest results or evidence of returns are reported, so the screen's intended criteria need clarification and testing before use.

Key ideas

• The proposed screen combines a year filter, price amplitude, and a concentration measure.
• The written criteria and code examples disagree about the concentration conditions.
• The article cautions that short-term screening can overlook fundamentals and risk controls.
• No performance evidence is provided for the selection rule.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.