Screening Stocks by Ten-Day Return, Positive P/E, and Daily Range

Summary

This post presents a stock screen using three conditions: daily price range above 1%, positive price-to-earnings ratio, and a ten-day return above zero but below 35%. The intended rationale is to find profitable companies showing recent gains and active price movement, while avoiding stocks with either negative performance or very large short-term advances. It also provides indicator formulas and a Python example for applying the filters to historical stock data.

The post does not report a backtest, sample, or realized returns, so it offers no evidence that the thresholds produce an advantage. It cautions that a positive P/E does not rule out overvaluation, and recent gains may be temporary rather than durable. The example is a basic screening illustration; it does not address transaction costs, portfolio construction, or how to validate the rule across market conditions. The author suggests supplementing the screen with other technical and fundamental measures and ongoing evaluation.

Key ideas

• The screen requires a daily range above 1%, a positive P/E ratio, and a positive ten-day return below 35%.
• The proposed rationale is to combine recent upward movement with profitability and active trading.
• The document supplies formulas and sample implementation logic but no backtest or outcome data.
• The thresholds may select overvalued stocks or capture gains that do not persist.

Tags

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