Combining Price Range, Prior-Day Lows, and ROE for Stock Screening

Summary

The post describes a stock screen combining a daily price condition with a profitability filter: select stocks whose intraday high-to-low range exceeds a stated threshold, whose current low is below the previous day’s low, and whose return on equity has remained above a stated level for five years. It frames the range and low-price comparison as technical criteria and the ROE history as a measure of persistent profitability.

The author acknowledges that a few filters cannot capture a company’s full condition, that lower-priced stocks may be more exposed to sentiment swings, and that short-term price changes can distract from long-term value. Suggested refinements include adding technical and fundamental measures, considering industry and company characteristics, and applying risk controls. The page supplies example indicator and Python snippets, but no backtest, performance evidence, or validation of the formulas; the examples therefore do not establish that the screen is profitable or correctly implemented.

Key ideas

• The screen combines a daily range and lower-low condition with a five-year ROE filter.
• The post treats price movement as a technical signal and ROE as a measure of profitability.
• The author warns that a small set of filters can miss market, industry, and company-specific risks.
• Additional indicators and risk controls are proposed, but no evidence demonstrates improved results.
• The sample formulas are not accompanied by backtest results or implementation validation.

Tags

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