Screening Low-Priced Stocks by Amplitude and Turnover

Summary

This stock-selection rule screens for shares priced below 12, with amplitude above 1 and previous-day actual turnover between 3% and 28%. The post supplies example indicator logic and Python-style sample code intended to illustrate how the conditions can be combined into a single filter. The underlying idea is to pair a low share price with recent price movement and trading activity as selection criteria.

The document offers no backtest, return data, benchmark, or evidence that the filter predicts performance. Its discussion itself cautions that a low nominal share price does not establish company value, that past amplitude and turnover may not reflect current conditions, and that cheaper stocks may be less liquid. It suggests adding valuation, macroeconomic, and liquidity measures, but does not specify or evaluate those extensions. The screen is therefore a basic candidate-generation rule, not a tested trading strategy or complete portfolio method.

Key ideas

• The screen selects stocks with amplitude above 1, previous-day turnover from 3% to 28%, and price below 12.
• The post illustrates combining the three conditions into a screening rule.
• A low nominal price alone does not indicate that a company is attractively valued.
• Historical amplitude and turnover may not describe current market conditions.
• Liquidity and additional valuation or macroeconomic factors could change the selection, but the post does not test them.

Tags

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