Filtering, as defined by Trade-Ideas, is the act of narrowing down the universe of potentially actionable securities for use in an alert, top list or multi-strategy window. Filtering can be simplistic such as defining a particular price or volume requirement to complex behavior such as ensuring the position of a stock in a range, defining its proximity to various intra-day and daily moving averages and or specifying minimum requirements for a stocks market cap.
Effective strategy development utilizing Trade-Ideas incorporates layering appropriate filters and selecting timely alerts also known as triggers. Filters are the narrowing mechanism which identifies the stock candidates that can possibly be triggered in an alert window. Without filters, it is like trying to drink from a fire hydrant that is wide-open. Applying filters to a strategy is likened to tightening the nozzle on the fire hydrant – giving you a stream you can use.
The Trade-Ideas ‘Stocks Like This Page’ provides a peek into our database of filter values for any stock at any time. It can be viewed here.