Dirham is a halal stock screener that filters stocks through Islamic compliance standards and identifies swing trading opportunities with statistical confidence. It answers two questions: "Is this stock halal?" and "Is this a good time to trade it?"
Every stock is screened against the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) Standard 59 — the most widely recognized Islamic finance screening methodology.
Two financial ratios must pass:
Debt / Market Cap < 30% — The company's interest-bearing debt must be less than 30% of its total market value. This limits exposure to riba (interest).
Interest Income / Revenue < 5% — Less than 5% of the company's total revenue can come from interest-based earnings.
Companies in inherently haram industries (conventional banking, alcohol, tobacco, gambling, weapons) are excluded regardless of their financial ratios.
Instead of just pass/fail, Dirham shows how cleanly a stock passes screening:
How far the stock is from the AAOIFI thresholds. A stock with 6% debt (limit 30%) scores much higher than one at 28%. Higher confidence means less risk of the stock drifting into non-compliance.
Board Verified — This stock is held by at least one major halal ETF (SPUS, HLAL, or MNZL), meaning a professional Shariah advisory board has reviewed and approved it.
Algo Screened — This stock passes our algorithmic AAOIFI screening but has not been verified by a Shariah board. The financial ratios are correct (sourced from SEC filings), but the business activity classification relies on industry codes rather than manual review.
A statistical measure of how likely this stock is to make a 2-5% price swing in the coming week. Built from six components:
Regime Alignment (25%) — Is the stock's current volatility normal for its history? Normal volatility = predictable swings.
Swing Frequency (20%) — How often has this stock swung 2%+ per week over the last year? Measured with EWMA weighting so recent behavior counts more.
Consistency (20%) — Does the stock swing regularly, or in unpredictable bursts? Consistent swingers are more reliable.
Volume Quality (15%) — Is current volume low relative to recent history? Low-volume pullbacks revert more reliably (the selling lacks conviction).
Sector Environment (10%) — Is the stock's sector in a range-bound phase (good for swings) or a strong trend (risky for mean reversion)?
Market Regime (10%) — Overall market health. High VIX, bear market conditions, or credit stress reduce confidence across all stocks.
A stock is in an "entry zone" when multiple technical signals align, suggesting a favorable moment to enter a swing trade. All of these must be true simultaneously:
1. Price is statistically depressed (Z-score below adaptive threshold)
2. Short-term momentum is oversold (RSI(2) below 10)
3. Longer-term trend is not in freefall (RSI(14) above 40)
4. Price is near a historical support level
5. Volume on the pullback is low (lack of selling conviction)
6. Swing confidence is at least 60
7. No earnings announcement within 5 trading days
A five-axis radar chart showing the stock's profile at a glance:
Compliance — How cleanly it passes halal screening (0-100)
Swing — Statistical swing confidence (0-100)
Value — Fundamental valuation (P/E, P/B relative to sector)
Health — Financial strength (low debt, strong cash position)
Momentum — Recent price and volume trend direction
Hurst Exponent — Below 0.5 means the stock is statistically mean-reverting (tends to swing back). Lower = stronger mean reversion.
OU Half-Life — How many days the stock typically takes to swing halfway back to its mean. 3-15 days is the ideal range for weekly swing trades.
ATR% — Average True Range as a percentage of price. Measures how much the stock moves daily. 1.2-5.0% is the sweet spot for swing trading.
RSI(2) — Ultra-short-term momentum. Below 10 = extremely oversold (potential entry). Above 90 = extremely overbought.
Z-Score — How many standard deviations the current price is from its 30-day mean. Negative = below average (potential entry). Positive = above average.
When a stock's debt or interest ratios are trending upward quarter over quarter, Dirham flags it as "deteriorating" — the stock may be heading toward non-compliance. This gives you time to act before the stock crosses the threshold.
VIX — The market "fear index." Below 20 = calm. Above 25 = elevated fear. Above 30 = high stress. Swing trades are less reliable during high VIX.
S&P vs 200d — Whether the S&P 500 is above or below its 200-day moving average. Below = bear market conditions.
Breadth — Percentage of stocks above their 5-day average. Below 25% = broad selling. Above 80% = over-extended.
Financial statements: SEC EDGAR (official US government filings).
Stock prices: Alpaca Markets.
Halal ETF holdings: SPUS, HLAL, MNZL quarterly disclosures.
All screening ratios computed from the same source data that professional halal screeners use.