SmallCapData runs a proprietary screening algorithm across the ASX universe multiple times each trading day. Here's a high-level overview of the process.
Step 1: Universe Filtering
The screener starts with every listed security on the ASX — over 2,200 tickers. It applies a series of pre-filters based on market capitalisation, liquidity, and trading activity to remove securities that don't meet minimum thresholds. This narrows the field significantly before the computationally intensive analysis begins.
Step 2: Multi-Dimensional Analysis
Each surviving ticker is analysed across six proprietary dimensions, each contributing a weighted portion to the overall signal:
The exact weighting, thresholds, and indicator combinations are proprietary and are periodically refined based on backtesting results.
Step 3: Signal Ranking
The dimensions are blended using a proprietary weighting model. Tickers are ranked and only those above an internal threshold are included in the output.
Step 4: Reference Levels
For each qualifying ticker, the algorithm calculates volatility-adjusted reference levels. These are derived from proprietary ATR-based calculations that account for each stock's individual volatility profile. They are mathematical outputs, not price predictions or recommendations.
The screener is a quantitative tool. It identifies tickers exhibiting certain mathematical characteristics — it cannot predict whether a stock will go up or down. All output should be treated as a starting point for your own research.