Stock Screening with High Amplitude, a Ten-Day Average Opening Price, and Scale

Summary

This stock-selection note proposes filtering for shares with amplitude above 1, an opening price near the ten-day moving average, and scale above a stated threshold of 200 million. It presents the screen as a way to find moderately sized stocks with some price movement. Formula and Python examples show how to calculate amplitude, compare the open with a band around the moving average, and intersect the resulting candidate lists.

The note warns that company scale alone does not capture intrinsic value and that historical data may miss future changes. It recommends combining size with financial measures such as revenue and profit growth, broadening the stock pool, and considering fundamental prospects. It offers no backtest, performance results, or evidence that the proposed filters predict returns. The explanation also makes unsupported generalizations about size and growth potential, while its implementation examples should be checked for consistency in definitions, units, and timing before use.

Key ideas

• The screen combines amplitude above 1, an opening price near the ten-day moving average, and a scale threshold of 200 million.
• The note gives formula and Python examples for computing and combining the filters.
• It cautions that scale is an incomplete proxy for business value and that historical data can miss future changes.
• Suggested refinements include growth and financial measures and a broader candidate pool.
• No strategy performance evidence or backtest results are provided.

Tags

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