Screening Low-Priced Stocks by Amplitude and Main-Force Control

Summary

This post describes a short-term equity screen requiring daily price amplitude above 1, evidence of main-force control on the previous day, and a share price below 12. It characterizes the filters as combining technical and fundamental considerations, although the stated criteria are mostly price and trading-related. The accompanying Python example uses amplitude, turnover ratio, positive earnings, market capitalization, holder data, non-ST status, and a price cap; these proxy conditions do not directly establish the named main-force-control signal.

No backtest or performance evidence is provided. The post warns that short-term price swings can lead to poor decisions and that these filters cannot capture a company’s full value or fundamental risks. It recommends adding further technical and fundamental measures and adapting the screen to market conditions, but gives no specific evaluation method. The headline rule and sample implementation differ, so the code should be read as an illustrative alternative rather than an exact reproduction.

Key ideas

• The stated screen selects shares with amplitude above 1, previous-day main-force control, and price below 12.
• The sample implementation substitutes several data filters that do not directly measure main-force control.
• The post cautions that short-term price movement and incomplete fundamental information can cause losses.
• No empirical performance evidence or method for validating the filters is included.

Tags

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