Short-Term Stock Screening by Amplitude, Control, and Convertible Bonds

Summary

This note proposes a short-term equity screen using three stated conditions: price amplitude above 1, evidence of main-fund control on the prior day, and a nonempty name for outstanding convertible bonds. It interprets amplitude as a sign of market volatility, the control condition as an indication of capital flows, and convertible-bond status as information about company financing. Example formula references and Python filters are included, although their correspondence to the stated conditions is not fully clear.

The author warns that a single-factor screen may select few stocks, and that the presence of outstanding convertible bonds does not establish that a company's financing is healthy. Short-term trading is described as risky, with position and risk controls advised. The note provides no backtest or results, and recommends incorporating fundamentals, technical conditions, and valuation before drawing conclusions. The examples are illustrative and may require adjustment to data definitions and trading needs.

Key ideas

• The screen combines a price amplitude threshold, prior-day main-fund control, and convertible-bond information.
• The note treats amplitude as a signal of higher market movement.
• An outstanding convertible bond label does not by itself indicate sound financing.
• The author flags limited candidate counts and elevated short-term trading risk.
• Broader fundamental, technical, and valuation analysis is suggested, but no performance evidence is given.

Tags

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