How It Works | Finding Symbols

It's easy to find stock symbols that move. You don't want to get stuck in a stock that isn't being traded.

Simple Formula to Choose Symbols

I run a program to generate a list of symbols that guarantees they are highly traded and move significantly in price. This program filters all the symbols in the NYSE and NASDAQ by how they performed in the prior days market.

1. Only select stocks that are greater than $10.00. Stocks that are less than 10 dollars will not generate enough profit.

2. Stock symbol needs to be trading more than 250,000 shares each day over the last 5 trading days. This will prevent you from selecting a low volume stock that you could get stuck in.

3. The symbol needs to have more than 1000 unique trades in the last trading day. This means that there were lots of unique people or robots trading the stock. This will prevent you from getting trapped in a stock where there were just a few large trades that totaled more than 250,000.

4. Most importantly the price movement of the stock needs to be greater than 1% of the daily close price. For example if the stock symbol ABC is $100 then 1% of that price is $1. To find out if the stock is moving that much. Subtract the daily low price from the daily high price. Let's say the low of ABC for the day was $98 and the high was $101. The difference would be $3. That's much more than the 1% of $1.

Step: 2

Your currently on step 2,
"Symbols". For the next step in the series, click below.

Choosing Stock Symbols for Algorithmic Trading

How It Works Series