Screening Stocks by Daily Range, Ten-Day Return, and Positive PE

Summary

This stock-selection rule filters for shares with daily high-low amplitude above 1%, a ten-day return above zero but below 35%, and positive PE. The stated rationale is to find stocks with some recent upward movement without selecting the largest short-term gainers, while excluding companies with negative earnings. The document gives an illustrative Python filter using daily high and low prices, opening price, ten-day percentage change, and PE.

The article provides no backtest, performance evidence, or precise universe and data-timing rules. Its formula example also appears inconsistent with the prose: the formula compares close with open using a 3% threshold, rather than implementing the described amplitude and ten-day return filters. Positive PE alone does not establish value or quality, and recent returns and price range do not control downside risk. The article recommends adding market context, fundamentals, and technical measures, but does not specify how to combine or validate them.

Key ideas

• The screen requires daily amplitude above 1%, a positive ten-day return below 35%, and positive PE.
• The proposed rationale combines recent price movement with a basic profitability-related valuation filter.
• The document supplies a sample implementation but no historical performance evidence.
• The reference indicator formula does not fully match the prose selection criteria.

Tags

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