Combining Recent Returns, Capital Inflows, and Limit-Up Filters in Stock Screening

Summary

This document outlines a stock screen requiring positive but less than 35% price appreciation over ten days, no limit-up session on the prior day, and a reported increase in holdings or capital allocation above 5% today. The author interprets these conditions as moderate recent strength, avoidance of an extreme prior-day move, and positive market interest. The post then proposes adding reasonable valuation, stable profitability, and lower debt as further filters.

The discussion is qualitative: it gives no backtest, sample definition, or return statistics to support the screen's potential investment value. It also acknowledges that changing expectations can reverse inflows, stable recent prices do not ensure future stability, and gains can be followed by pullbacks. The additional fundamental conditions are suggestions rather than quantified rules, so their definitions and implementation would need to be specified before the screen could be evaluated consistently.

Key ideas

• The initial screen combines ten-day price appreciation, the absence of a prior-day limit-up, and a current holdings-increase measure.
• The return filter seeks recent gains while excluding stocks with the strongest short-term advances.
• The post suggests adding valuation, profitability, and debt filters but does not define thresholds for them.
• No backtest or measured evidence is supplied, and the stated conditions do not guarantee future performance.

Tags

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