Stock Screening by Daily Range, Prior Turnover, and Company Type

Summary

This stock-selection proposal combines three filters: daily price amplitude above 1, prior-day actual turnover between 3% and 28%, and a company type associated with a market theme. The intended logic is to pair price movement and trading activity with a categorical company attribute. The post includes example formula and Python-style snippets, but does not define a complete trading strategy, entry timing, exits, or position sizing.

The rationale is qualitative and no backtest or performance evidence is reported. The author notes that company type is broad, does not ensure future business performance, and should be considered alongside other factors such as valuation. The description and sample code are ambiguous: the amplitude threshold lacks a clear unit, the turnover calculation may not correspond to prior-day actual turnover, and the example company category is not operationally specified. The criteria would need precise definitions and validated data before their usefulness could be assessed.

Key ideas

• The proposed screen combines daily amplitude, a prior-day turnover band, and a company-type filter.
• The intended company category is described broadly as one related to a market theme.
• The post provides no evidence that the filters predict returns.
• The amplitude unit, turnover calculation, and company-type definition are ambiguous in the examples.

Tags

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