A Main-Board Stock Screen Using Turnover, Daily Gains, and 10-Day Returns

Summary

This stock-selection method filters for main-board shares with turnover between 3% and 12%, a daily gain above 1%, and a positive 10-day return below 35%. The article describes the added 10-day return band as a way to focus on recent upward movement while excluding stocks with larger gains over that period. It includes formula and Python examples intended to illustrate the filters.

No backtest results or evidence of profitability are provided. The article warns that a short-term, price-focused screen may miss fundamentally strong companies and select volatile stocks that can incur large losses. It recommends adding financial or technical measures and considering risk assessment. The examples should be checked carefully: the Python condition applies the return band across each of the last ten daily changes, which differs from checking the cumulative 10-day return stated in the strategy description. The formula example also appears to require verification against the intended conditions before use.

Key ideas

• The stated screen combines 3%–12% turnover, a daily gain above 1%, main-board membership, and a 10-day gain between 0% and 35%.
• The 10-day return condition is intended to constrain recent upward movement.
• The article warns that short-term price filters can favor volatile stocks and overlook company fundamentals.
• The sample implementation should be reviewed because its daily-return checks may not match the stated cumulative 10-day condition.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.