Creating a Screener and it's uses

Screener can be used for the following while building the portfolio:

  1. Screen those stocks on a regular interval (Rebalance Period) which best fit your trading strategies. For example, if you have to build a trend following strategy you can use the screener to screen those stocks which are trending.
  2. Check on Higher candle intervals. For example, your strategy is on 15 mins candle but want to trade only when certain conditions on 30mins or any other higher candle period conditions are met.
  3. Identify the range breakout stock for intraday trading
  4. Screen with Open Interest Data to identify Long/Short Buildup, Long Unwinding or Short Covering - trading with smart money.
  5. Screen with news sentiment. A score of -1 to +1 indicates highly negative to highly positive sentiment on a particular stock.
  6. Or make any combinations of the above conditions.
  7. Use the Market filter to help you screen stocks only when the market direction is met. For example, if you have a long-only strategy and want to trade only when the Nifty 50 Index is above 100day moving average.

Follow the below steps to create a screener.

  1. Once you log in, click on Screeners on the upper tab and then click Create Screener as shown below:

  2. Create the Screener

    • Name the screener
    • Select Stock group from list or create your own by selecting custom stock and then by exchange
    • Candle Period: This is used for technical indicators based screening
    • Portfolio Rebalancing: Select the rebalance period, indicating how frequently you want to run the screener. It would be higher than the candle period
    • Date: By default its current time. If you want to run a screener on any specific date you can modify here
    • Equity / Futures: This is applicable only on NSE 50 and Derivatives stock group to check whether you want to screen equities or futures contract.
    • Select the Filter Types based on your need as explained on screener functions above. Open Interest would be active for NSE50/Derivatives/Options stock group only.

Below is the screenshot of creating screener to identify the stocks from Nifty 50 whose trend strength is more than 30 based on ADX and is positive.

Once you click on Process it would run the conditions on the background and can be viewed from eye button on screeners page as shown below. It might take up to 50 seconds based on the volume of data to screen and provide the list.

The screener can be used while building a portfolio. Let’s build a Paper Trade portfolio from a screener.

  1. Click on + button against the screener to preselect a screener in Build Portfolio page.
  2. Fill out the details in the portfolio page with appropriate strategy as shown below.

Once you confirm, the portfolio would get created and can be viewed from the Dashboard based on it’s type.

Paper Trade or Live Portfolios created with screener would rebalance the stocks (instruments) periodically based on the rebalance period selected while creating the screener.

However, for backtest with the screener, it would not rebalance and the backtest would be performed on the stocks screened initially.

Happy Trading!!

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