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First I run all foals through SBA. Then I look at the ones that passed SBA.
For example, 2nd gen. I geld/spay any intact foals that passed SBA but papered C/Yellow. (I start with B/C stallions and R/Y mares) Then I open up each stallion's progeny record and go through the boys and girls. I look at color and what I want from those lines, then geld/spay accordingly. Then I comp test them to their parents. I keep only the superior ones. For 2nd gen, I want A/B boys that test superior and Blue/Red girls that test superior.

3rd gen, the boys must be A and test superior. Girls must be Blue and test superior.

4th gen the boys must be Star/A and test superior. Girls must be Gold/Blue and test superior.

5th gen the boys must be Star and the girls must be Gold, and both must test superior.

For show stock, I cull them by PT score.

2nd gen, I keep 10 and up.
3rd gen, I keep 10.5 and up
4th gen, I keep 11 and up.

Basically I just increase the PT score by .5 per generation.

That PT score system I also apply to stallions and mares for their respective generations. Any that don't meet that AFPT requirement gets gelded/spayed once they've had at least 3 foals.

2nd gen stallions and mares must have an AFPT of 10.5
3rd gen - 11
4th gen - 11.5

and so on

I only keep superior offspring. I also alter anything that doesn't fit my program genetically. I end up with a lot of sba passing foals that I won't breed. Most of my lines I don't like W20, so those get altered. If the sire or dam, didn't pass Prl or Satin etc, I also alter. I keep all my altered stock to show.