Screening Stocks by Volatility, Recent Gains, and Company Scale
Summary
The proposed stock screen combines three conditions: amplitude above 1, at least one daily gain of 10% or more within the previous 25 trading days, and company scale above 200 million. The text frames these as filters for active price movement, recent strength, and minimum size. It also discusses adding financial measures and market conditions to make the selection more comprehensive.
No backtest results or performance comparisons are provided. The document notes that the screen may miss smaller companies with potential, that size alone does not indicate business quality, and that macroeconomic conditions can affect large firms as well. The meaning of the amplitude threshold is not fully consistent across the prose and formula references, and the example leaves the additional financial and market filter unspecified. As a result, the described criteria are a starting point for screening rather than a fully specified, validated trading strategy.
Key ideas
- The screen uses an amplitude threshold above 1 and a recent daily gain of at least 10% within 25 trading days.
- It filters for company scale above 200 million.
- The document cautions that size does not guarantee company quality and may exclude smaller candidates.
- It recommends considering financial indicators, macro conditions, and risk controls.
- The examples do not fully specify the extra filters or provide performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.