High risk stocks

Screening Filters & Rationale

1. Market Cap (max: $10 billion):

   • Purpose: Focuses on micro-cap and small-cap stocks, which are typically more volatile and high-risk.
   • Rationale: Smaller companies often experience larger price swings, aligning with the high-risk investment objective.

2. Relative Volume (min: 1.1):

   • Purpose: Identifies stocks with trading activity significantly above their average volume.
   • Rationale: Increased volume can indicate heightened investor interest, often leading to greater price volatility.

3. Short Ratio (MoreThan30Pct):

   • Purpose: Targets stocks with a high percentage of shares sold short.
   • Rationale: High short interest can signal bearish sentiment but also creates potential for a short squeeze, increasing risk and reward.

4. Beta (HighRisk):

   • Purpose: Selects stocks with a high beta, indicating greater sensitivity to market movements.
   • Rationale: High-beta stocks tend to exhibit larger price fluctuations, suitable for high-risk strategies.

5. Gap-Up Pattern:

   • Purpose: Focuses on stocks that opened significantly higher than their previous close.
   • Rationale: Gap-ups often result from positive news or events, but they can also lead to increased volatility and risk.