Stock Screening by Price, Daily Range, and Listing Age

Summary

This note outlines a basic equity screen using three conditions: a price range or amplitude above a stated threshold, a closing price below a specified level, and a minimum number of days since listing. It presents the range as a way to identify more volatile shares, the price condition as a low-price filter, and listing age as a rough proxy for company and market maturity. Formula and Python examples show how these filters might be combined to select stocks.

The document cautions that listing-age thresholds depend on market conditions and that the screen omits important information such as financial measures and governance. It suggests adding fundamental and technical filters and managing selections as a portfolio. No historical test, return evidence, or precise value for the listing-age threshold is provided. The examples also describe the amplitude calculation differently, so an implementation would need to define the reference price and verify units before use; the screen alone does not establish that selected shares are attractive investments.

Key ideas

• The proposed screen combines a range threshold, a low closing-price ceiling, and a minimum listing age.
• The note treats range as a volatility filter and listing age as a rough maturity measure.
• It recommends adding financial, industry, governance, and technical information.
• The amplitude examples use different reference prices, which should be resolved before implementation.
• No backtest evidence is given to show that the screen predicts returns.

Tags

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