A Stock Screen Using Daily Range, Prior-Day Limit Status, and Positive P/E

Summary

This post describes an equity screen that selects stocks with a daily high-low range above a threshold, that did not close at the upper price limit on the previous day, and that have a positive price-to-earnings ratio. The proposed rationale is to seek stocks with some price movement and positive reported earnings while excluding recent limit-up moves that may reflect short-term speculation. The post also gives example formulas for range and trailing P/E, along with a sample data workflow.

The author notes that a positive P/E filter can exclude companies whose financial figures are unusual despite potential investment value, and suggests incorporating additional technical indicators and company results. The example does not report backtest outcomes or returns, and its code does not clearly apply the stated range condition. Threshold conventions and exchange-specific price limits also require careful handling, so the screen is an unvalidated filter rather than evidence of an effective strategy.

Key ideas

• The screen combines a daily range threshold, a prior-day limit-up exclusion, and positive trailing P/E.
• The range condition is intended to select stocks with price movement.
• The prior-day filter aims to avoid stocks affected by recent limit-up activity.
• The author warns that P/E screening can omit companies with unusual financial data.
• No backtest results are provided, and the sample code does not clearly implement every stated condition.

Tags

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