A Technical Stock Screen with Trend Filters and Exit Rules

Summary

This post proposes an equity screen combining daily range above a threshold, rising lows, and price above its five-day moving average. Its expanded version adds a longer-term trend check using the 20-day and 250-day averages, valuation limits, market-cap filtering, and exclusion of specially designated stocks. It also gives exit conditions based on price falling below the 30-day average or declining beyond a stated percentage. The post describes code examples for implementing the rules in stock-screening software and Python, but provides no performance results or backtest evidence.

The author frames the setup as a technical momentum or trend screen and notes that it omits company fundamentals and may be sensitive to short-term market sentiment. Suggested refinements include adding valuation, growth, and industry context, and changing moving-average periods or including other indicators. The exact meaning and implementation of “rising lows,” range, and the coded conditions are not fully explained, so the examples may need review before use. The rules are a screening proposal, not evidence of profitability or a complete portfolio and execution plan.

Key ideas

• The initial screen combines elevated price range, rising lows, and price above a five-day average.
• The expanded rules add longer-term moving-average alignment, valuation and market-cap filters, and exclusions for designated stocks.
• Proposed exits use the 30-day average or a fixed percentage decline.
• The post warns that technical-only screening can miss fundamentals and react to short-term sentiment.
• No backtest results are supplied, and some rule definitions and code details need clarification.

Tags

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