Low risk high reward

Quick Note on Your Goal

Earning a consistent $2,000 every day from trading or investing can’t be guaranteed, no matter what filters or stocks you choose. What we can do is screen for stocks that historically show lower risk and a favorable risk/reward profile, which is exactly what these filters are designed to do.

Screening Filters

1. Market Cap ≥ $10 Billion (market_cap: {'min': '10000000000'})

   • Purpose: Focus on larger, more established companies.
   • Rationale:
     • Bigger companies (large caps) typically have more stable earnings, diversified operations, and better access to capital.
     • This generally reduces company-specific risk compared to small, speculative names.
     • For “low-risk” exposure, large caps are usually preferred over micro/small caps.

2. Low to Moderate Beta (beta: ['LowRisk', 'ModerateRisk'])

   • Purpose: Limit volatility relative to the overall market.
   • Rationale:
     • Beta measures how much a stock tends to move versus the market (e.g., S&P 500).
       • Low-risk/low-beta: tends to move less than the market (more stable).
       • Moderate-risk/moderate-beta: still not extremely volatile, but with some movement that can create upside.
     • This aligns directly with your “low-risk” requirement—excluding high-beta, high-volatility names.

3. Listed on NYSE or NASDAQ (list_exchange: ['XNYS', 'XNAS'])

   • Purpose: Restrict results to major, highly regulated US exchanges.
   • Rationale:
     • NYSE and NASDAQ host most of the largest, most liquid US companies.
     • Higher liquidity usually means tighter spreads and easier trade execution, which can reduce trading frictions and some forms of risk.
     • Also excludes OTC/pink sheet stocks, which tend to be riskier and less transparent.

4. Region: United States (region: ['United States'])

   • Purpose: Match your request for US stocks specifically.
   • Rationale:
     • Filters out foreign listings and ADRs, ensuring exposure to US-based companies under US regulations, accounting standards, and macro environment.
     • Also simplifies tax/regulatory considerations for many investors.

5. Debt-to-Equity ≤ 1.0 (debt_equity: {'max': '1.0'})

   • Purpose: Favor companies with more conservative balance sheets.
   • Rationale:
     • Debt-to-equity compares how much a company finances itself with debt versus equity.
     • A ratio ≤ 1.0 means the company is not heavily levered (has equal or less debt than equity).
     • Lower leverage generally means lower financial risk, especially in downturns or rising-rate environments—supporting the “low-risk” side of your goal.

6. Positive Analyst View (analyst_consensus: ['Strong Buy', 'Moderate Buy'])

   • Purpose: Include only stocks where professional analysts have a favorable outlook.
   • Rationale:
     • “Strong Buy” / “Moderate Buy” reflect a consensus that the stock is undervalued or has good growth prospects.
     • While analysts are not infallible, this filter stacks the odds toward names that have been vetted for fundamentals, growth, or valuation, contributing to the “high-reward” potential.

7. Upside to Target Price (target_price_upside_potential: ['MoreAbovePrice'])

   • Purpose: Ensure analysts’ target prices are meaningfully above the current share price.
   • Rationale:
     • This captures situations where the market price is below what analysts estimate as fair value or achievable value in their models.
     • This is a direct way to operationalize “high-reward”: focusing on stocks with a measurable expected upside.

Why the Results Match Your Request

• Low-Risk:

  • Large market cap, low–moderate beta, and conservative debt levels collectively reduce fundamental and volatility risk.
  • Listing on major US exchanges and focusing on US companies further weeds out opaque or thinly traded names.

• High-Reward:

  • Analyst “Strong Buy/Moderate Buy” plus target prices meaningfully above current prices emphasize upside potential.
  • You’re not just getting “safe” names; you’re getting ones that professionals still see as having room to run.

Overall, these filters create a list of relatively stable, established US companies that still show a favorable risk/reward profile—aligned with your goal of low risk with meaningful upside, even though no specific profit (like $2K/day) can be guaranteed.