A stocks screener and a systematic investment calculator are essential tools for traders and investors looking to refine their stock selection process. While generic screeners offer pre-set filters, customizing a stock screener to align with your trading strategy can significantly enhance your decision-making and improve results.

Why Customizing a Stock Screener Matters

Stock screeners provide an efficient way to filter stocks based on specific criteria, helping traders and investors focus on high-potential opportunities. Customization allows you to:

  • Align the screener with your preferred investment style (e.g., value investing, growth investing, momentum trading)
  • Eliminate irrelevant stocks, saving time and effort
  • Adapt to changing market conditions and trading goals

Steps to Customize a Stock Screener for Your Trading Strategy

1. Define Your Trading Goals

Before setting up a stock screener, determine your trading objectives:

  • Short-term traders – Look for momentum, volume spikes, and volatility
  • Long-term investors – Focus on fundamental metrics like earnings growth and valuation
  • Income investors – Prioritize dividend yield and payout consistency

2. Select Key Screening Criteria

The right screening criteria depend on your trading style:

  • For Value Investing:
    • Price-to-earnings (P/E) ratio below industry average
    • Price-to-book (P/B) ratio under 1.5
    • High return on equity (ROE) and return on capital employed (ROCE)
  • For Growth Investing:
    • Earnings per share (EPS) growth above 10% annually
    • High revenue growth over the past five years
    • Low debt-to-equity ratio for financial stability
  • For Momentum Trading:
    • Relative Strength Index (RSI) above 70 (for strong uptrends)
    • Moving average crossover signals (e.g., 50-day MA crossing above 200-day MA)
    • High trading volume and recent price breakout patterns

3. Integrate a Systematic Investment Calculator

A systematic investment calculator can help evaluate long-term returns by simulating systematic investments in selected stocks. This helps long-term investors refine their stock selection for consistent wealth creation.

4. Test and Refine Your Screener

  • Run the screener on historical data to check if the selected stocks align with past successful trades
  • Adjust filters based on market trends or sector performance
  • Monitor real-time results to tweak criteria if needed

Conclusion

Customizing a stocks screener ensures that your trading strategy is aligned with market opportunities. Whether you’re a short-term trader or a long-term investor, using the right filters and integrating a systematic investment calculator can help you identify high-potential stocks efficiently.