A Small-Cap Stock Screen Using Turnover and Recent Price Spikes

Summary

This stock-selection screen filters for turnover between 3% and 12%, circulating market capitalization between 1 and 55 in the stated units, and at least one daily gain of 10% or more during the previous 25 trading days. The post gives both a formula-style expression and a Python-style example for applying these conditions to price and market data. The screen therefore combines a liquidity or activity measure, a size constraint, and a recent price-momentum event.

The document offers no backtest, benchmark, trade rules, holding period, or performance evidence, so the criteria should be treated as a screening proposal rather than a validated strategy. It warns that single indicators may be exploited by the market and that historical patterns can overfit. It suggests adding indicators such as RSI or MACD and periodically testing and adjusting the selection rules. The wording and code examples also differ in how turnover bounds are presented, so implementation should follow the intended inclusive range and ensure data units are consistent.

Key ideas

• The screen selects stocks with turnover from 3% to 12% and circulating market capitalization from 1 to 55 in the stated units.
• It requires at least one daily gain of 10% or more in the prior 25 trading days.
• The post supplies formula and Python-style examples for expressing the conditions.
• No backtest or performance evidence is provided, and the author flags overfitting and market risk.
• Additional indicators and periodic strategy testing are suggested as possible refinements.

Tags

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