Screening Metaverse Stocks with Volume Ratio and Valuation Filters

Summary

This stock screen selects companies classified in the metaverse industry, with a volume ratio above 1.5 and below 6, positive earnings, and a price-to-earnings ratio below 30. The example code also requires at least two limit-up closes within the prior 50 days and applies an industry classification condition. The document explains volume ratio as a measure of short-term trading activity and uses the positive PE requirement to exclude loss-making firms.

The article suggests adding fundamental measures such as revenue and net income, activity measures such as trading volume, or technical indicators. It does not provide backtest results, define the market universe consistently across the screen and sample code, or assess how the conditions perform across market regimes. The PE threshold is presented as a simple filter, with the caveat that a common cutoff may not suit companies in different sectors or with different business models. The rules are an illustrative screening recipe rather than evidence of a profitable strategy.

Key ideas

• The screen combines metaverse industry classification with a volume ratio between 1.5 and 6.
• It excludes companies with nonpositive earnings and applies a PE ceiling of 30.
• The sample implementation also checks for at least two limit-up closes in the prior 50 days.
• The article recommends adding fundamental or technical measures but provides no performance evaluation.
• A single PE cutoff may not capture valuation differences across business types.

Tags

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