Screening Small-Cap Stocks by Price Range and Recent Profitability

Summary

This proposed stock screen looks for companies with daily high-low range above 1%, market capitalization below 10 billion, and no losses. The initial description refers to 2021 data; the refined version adds positive net income in each of the latest four quarters, market-heat and technical indicators, and position limits and stop-losses. Formula and Python examples sketch how price range, capitalization, year, and profitability conditions might be combined.

The article gives no historical test results, holdings, or return evidence. Its initial and refined criteria differ, and the code examples contain placeholders and apparent ambiguities, including how the year condition is applied and what profitability period is checked. It warns that the screen may select smaller or less competitive firms, that focusing on one year can omit longer-term context, and that short-term technical filters can encourage speculation. The suggested additional indicators and risk controls remain proposals rather than validated improvements.

Key ideas

• The initial screen combines a daily range above 1%, market capitalization below 10 billion, and non-loss-making status.
• The refined proposal adds positive net income for the latest four quarters and additional market indicators.
• It recommends considering company fundamentals and historical context alongside price movement.
• Position limits and stop-losses are proposed as risk controls.
• The examples are incomplete and the document provides no backtest or performance evidence.

Tags

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