How do i create a customized screener

Screening Filters

1. Market Cap ≥ $5,000,000,000

   • Purpose: Focus on established, financially significant companies.
   • Rationale: A minimum market cap of $5B screens out very small or early‑stage firms that can be more volatile, opaque, and illiquid. For someone learning to build a “customized screener,” this is a common baseline to ensure you’re looking at companies with more stable business models, more analyst coverage, and generally better disclosure.

2. Market Cap Category: Large & Mid

   • Purpose: Target a balance between stability (large caps) and growth potential (mid caps).
   • Rationale:
     • Large caps are typically more mature, globally known companies with more predictable earnings.
     • Mid caps can provide more growth potential than large caps, but are still generally past the most speculative phase.
       Restricting to these two segments is a typical choice when designing a general-purpose screener for “core” portfolio candidates.

3. Monthly Average Dollar Volume ≥ $1,000,000

   • Purpose: Ensure sufficient liquidity to enter and exit positions reasonably easily.
   • Rationale: Using dollar volume (price × volume) rather than just share volume accounts for both price and trading activity. A $1M+ threshold helps filter out thinly traded stocks where bid–ask spreads can be wide and executing orders can meaningfully move the price—important for practical investability in a screener.

4. Beta: ModerateRisk

   • Purpose: Aim for stocks with volatility around the market average.
   • Rationale: A “ModerateRisk” beta (typically around 0.8–1.2, depending on the system) filters out extremely high‑beta (very volatile) and very low‑beta (defensive or bond‑like) names. For a general customized screener, this is a reasonable starting point if you’re not specifically targeting high‑risk growth or ultra‑defensive income stocks.

5. Net Margin ≥ 5%

   • Purpose: Focus on companies that can convert revenue into actual profits.
   • Rationale: A minimum net profit margin of 5% excludes many structurally unprofitable firms and those under severe margin pressure. It doesn’t demand ultra‑high margins (which might restrict you to only a few industries), but it does enforce basic profitability—a common “quality” filter for fundamental screeners.

6. Return on Equity (ROE) ≥ 10%

   • Purpose: Target efficient use of shareholder capital.
   • Rationale: ROE ≥ 10% is a widely used rule-of-thumb for “good” businesses. It helps single out firms that generate attractive returns on the equity invested, which often signals competitive advantages, sound management, or both. Including ROE is very typical when teaching/customizing a fundamental-quality screener.

7. P/E (TTM) between 10 and 30

   • Purpose: Avoid both extremely cheap (possibly distressed) and extremely expensive (possibly overhyped) stocks.
   • Rationale:
     • P/E < 10 can indicate deep value or serious problems (cyclicals at a peak, earnings about to fall, or business/financial distress).
     • P/E > 30 often signals high expectations and higher valuation risk.
       Setting a P/E band of 10–30 creates a “middle ground” of reasonably valued stocks, which is a sensible default boundary when you’re designing a general screener and not targeting deep value or hyper‑growth names specifically.

Why Results Match the User’s Query (“customized screener for financial assets”)

• The filters collectively illustrate how to translate broad goals (e.g., “established, liquid, reasonably safe, profitable companies at fair valuations”) into specific, quantitative criteria—exactly what’s involved in creating a customized screener.
• Each filter addresses a different dimension of stock selection that you’d typically customize:
  • Size & maturity: market cap and cap category
  • Tradability: dollar volume (liquidity)
  • Risk profile: beta
  • Business quality: net margin and ROE
  • Valuation: P/E range
• Together, they form a coherent template for a core-equity, quality-oriented screener. You can adjust each threshold (higher/lower ROE, tighter/looser P/E band, different beta range, etc.) depending on your specific strategy, but the structure is a practical example of how to build a custom screener from your investment objectives.