Stock Screener: Value and Momentum Nifty 500

Example Number 9: Value and Momentum Nifty 500

Category: Smart Beta Screeners

This screen aims to find stocks that have high momentum and yet are comparatively cheaper in value in the multi-cap universe of the Nifty 500. Our proprietary Value and Momentum scores are used here. Let’s get a deeper look into the parameters set.

How to Build This Screen

As we can see, we have also excluded stocks under surveillance.

Let’s see what the backtesting results tell us.

Backtest Results

As we can see, the screen doesn’t perform well against the benchmark in the 1Y timeframe. But we selected this screen to highlight something important in a strategy.

Not every screen you build will be for a short-term strategy. Let’s see if the screen fails for a longer period, too, or are we in for a sweet surprise?

It’s the latter. Take this with a pinch of salt, though. Because the opposite might be true, too. A screen that looks great in a short period might not hold up against the benchmark in the long term.

Always test your screens across different timeframes to understand when and where your screen can play out best.

Let’s now move on to our final example.