Stocks

Screening Filters

1. Market Cap ≥ $10B (market_cap: min 10,000,000,000)

   • Purpose: Focus on larger, established companies.
   • Rationale: When someone is asking “Should I even be trading right now given current market conditions?” it usually implies concern about volatility and risk. Large-cap stocks tend to:
     • Be more stable and less prone to extreme moves than small caps.
     • Have more analyst coverage and institutional ownership.
     • Be more resilient in periods of macro uncertainty.
       This filter steers you away from highly speculative, thinly researched micro- and small-caps, making the trading universe more suitable for cautious participation in uncertain markets.

2. Monthly Average Dollar Volume ≥ $1,000,000 (monthly_average_dollar_volume: min 1,000,000)

   • Purpose: Ensure liquidity and tradability.
   • Rationale: If you’re unsure whether you should even be trading now, a critical risk to avoid is getting “stuck” in illiquid names. High dollar volume helps:
     • Keep bid–ask spreads tighter, lowering trading costs.
     • Make it easier to enter and exit positions quickly, which matters more in choppy markets.
     • Reduce the risk that your own order significantly moves the price.
       This filter makes the candidate list more appropriate for active trading in real-world conditions.

3. Price Above 20-Day Moving Average (moving_average_relationship: PriceAboveMA20)

   • Purpose: Focus on stocks in a short-term uptrend.
   • Rationale: In uncertain or volatile markets, trading with the prevailing short-term trend rather than against it is often a more conservative approach. Price above the 20-day moving average typically indicates:
     • Short-term bullish momentum.
     • Buyers currently in control, at least over the last month.
       If you’re asking “should I be trading now,” this filter assumes that if you trade, you may want to emphasize names that are already acting well, not trying to catch falling knives.

4. Return on Equity ≥ 10% (return_on_equity: min 10)

   • Purpose: Emphasize financially strong, profitable businesses.
   • Rationale: A 10%+ ROE threshold tilts the screen toward:
     • Companies that generate solid returns on shareholders’ capital.
     • Generally higher-quality business models with sustainable profits.
       In uncertain market conditions, quality factors (like ROE) tend to matter more; strong businesses are better positioned to weather downturns and recover faster.

5. P/E (TTM) Between 10 and 30 (pe_ttm: min 10, max 30)

   • Purpose: Avoid extreme valuations on both ends.
   • Rationale:
     • Below 10 P/E can sometimes flag distressed, cyclical, or low-quality companies that the market is discounting heavily.
     • Above 30 P/E can flag richly valued or speculative growth stocks that may be more vulnerable if sentiment worsens.
       By bracketing P/E between 10 and 30, the screen looks for:
     • Reasonably valued companies: not “deep value distress” and not “bubble-like growth.”
     • A middle ground suitable for risk-aware trading when the market outlook is uncertain.

6. One-Month Rise Probability 0–100% (one_month_rise_prob: min 0, max 100)

   • Purpose: Include the model’s probability field in the framework, but without constraining it.
   • Rationale: The range 0–100% is the full possible spectrum, so this particular setting does not filter anything out. It’s effectively a placeholder that:
     • Keeps the probability metric available for later interpretation or customization.
     • Allows you (or another screen) to later tighten it, e.g., only include stocks with ≥60% estimated probability of rising in the next month.
       In this specific run, it doesn’t change the stock set but prepares for more probability-focused tweaks.

7. One-Month Predicted Return 0–100% (one_month_predict_return: min 0, max 100)

   • Purpose: Require a non-negative expected 1‑month return according to a model.
   • Rationale: While the upper cap of 100% is essentially just a safety bound, the minimum of 0% matters:
     • It excludes stocks where the model expects negative performance over the next month.
     • It keeps only those names where the forecasted return is at least mildly positive.
       For someone questioning whether they should trade now, this injects a “forward-looking” element—if you trade, you’re at least focusing on names with a positive expected 1‑month profile per the model, rather than blindly trading anything.

Why Results Match the User’s Question

• You’re asking a timing and risk question: “Should I be trading stocks right now given current market conditions?”
  The screen responds by not just picking arbitrary stocks, but by:

  • Focusing on large, liquid, higher-quality companies (Market Cap, Dollar Volume, ROE).
  • Ensuring reasonable valuations (P/E 10–30) that are less likely to implode purely on sentiment.
  • Requiring short-term positive price action (Price above 20-day MA), aligning with current market trends instead of fighting them.
  • Using a non-negative predicted return for the next month to bias toward names where the model doesn’t anticipate near-term downside.

• As a whole, these filters are designed to answer:
  “If I do choose to trade in this environment, what kind of stocks might be more suitable—liquid, stable, reasonably valued, and currently acting well—rather than speculative or distressed names?”

You can think of this screen as a way to trade more defensively and selectively in the current market, rather than a signal that you must or must not trade at all.