Screening Stocks by Daily Range, Price Shape, and Prior-Day Leaderboard

Summary

This stock screen combines three conditions: amplitude above 1, a recent price pattern described as arc-shaped, and an appearance on the prior day's market leaderboard. The supplied formula operationalizes the shape condition using the previous close's position within the recent five-day high-low range, with a threshold below one half. The post frames the range filter as a way to find active stocks and the leaderboard condition as a proxy for current market attention.

The author warns that relying heavily on leaderboard appearances can overlook company fundamentals and expose the screen to short-term capital flows. Suggested refinements include adding liquidity and market capitalization filters and studying which leaderboard lookback period is useful. No backtest, return series, or precise evidence supports the proposed benefits, and the arc-shaped label is not fully explained beyond the formula. The strategy is therefore an illustrative screening idea with material specification and validation gaps, rather than a proven trading method.

Key ideas

• The screen combines amplitude above 1, a five-day price-range position condition, and a prior-day leaderboard appearance.
• The formula represents the arc-shaped condition through the previous close's location within a recent high-low range.
• The proposed rationale associates greater amplitude with trading activity and leaderboard appearance with market attention.
• The post cautions that leaderboard-based selection can be vulnerable to short-term flows and can omit fundamental factors.
• No performance evidence is provided, and the shape condition and selection rules need further specification and testing.

Tags

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