Small-Cap Stock Screen Using Price Range and Recent Limit-Up Events
Summary
This stock-selection method screens for shares with a daily price range above 1%, a circulating share count no greater than 5.5 billion, and at least two limit-up events over the preceding 500 days. It is intended to combine volatility, a smaller share base, and evidence of prior sharp upward moves. The document includes formula and Python examples and describes ranking the resulting candidates by turnover rate.
No backtest or performance results are supplied, and the examples differ in how they calculate the lookback for limit-up events: the stated rule uses 500 days, while the Python example uses a two-period rolling window. The method also does not define entries, exits, or position sizing. The article cautions that the screen may select financially weak companies, may be sensitive to broad market conditions, and relies heavily on price behavior. It recommends adding financial and business-quality checks and periodically reviewing the criteria as market conditions change.
Key ideas
- The screen requires a range above 1%, circulating shares at or below 5.5 billion, and at least two prior limit-up events in 500 days.\nThe intended rationale combines volatility, smaller capitalization, and past strong upward moves.\nThe example code ranks qualifying stocks by turnover, but its lookback differs from the stated 500-day rule.\nThe document reports no backtest, returns, or complete entry and exit framework.\nIt recommends adding fundamental checks and adapting the screen to market conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.