Screening Main Board Stocks by Daily Range and Price Gains

Summary

This note describes a historical screen for main-board stocks using three criteria: daily high-to-low range greater than one percent, a date in 2021, and a daily gain greater than one percent. Its stated purpose is to place qualifying shares in a candidate investment pool. Formula and Python examples are included, although their calculations do not fully match: one Python condition measures the close against the open rather than the prior close, and the range denominator also differs from the formula description.

The article argues that a larger daily range signals higher volatility and that a recent gain may reflect short-term strength. It warns that the screen omits valuation and other fundamental information, and that stocks selected for a short-term rise may later fall. No backtest results or evidence of profitability are provided. The criteria describe a dated historical filter, not a complete trading system: there are no entry or exit rules, position sizing instructions, or risk controls. Differences among the examples should be resolved before reproducing the screen.

Key ideas

• The screen selects main-board stocks from 2021 with a daily range above one percent and a daily gain above one percent.
• The article treats a larger intraday range as a sign of greater volatility.
• The examples differ in how they calculate the daily gain and the range denominator.
• The note cautions that price-based filters omit valuation and other fundamental factors.
• It provides no evidence of returns or rules for managing positions.

Tags

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