Combining Moving-Average Trend Filters, Golden Crosses, and Fund Flows
Summary
The proposed stock screen combines a rising 30-day moving average, three simultaneous technical-indicator golden crosses, and a daily increase in holdings above a stated percentage threshold. The post interprets these conditions as evidence of rising longer- and shorter-term trends and potential buying interest. It suggests adding filters for adverse news, distressed-status shares, and weak fundamentals, and names further technical indicators and moving-average periods as possible refinements.
The post also gives a code example that calculates a net-flow ratio against market capitalization and combines crossover flags to count qualifying stocks. However, it does not define the three indicators consistently, provide a backtest, or show returns, risk, or transaction costs. It acknowledges that apparent inflows can precede distribution and that technical signals may not align across time horizons. The screen is therefore a hypothesis for stock selection, not evidence of a profitable strategy; its data definitions and validation would need to be specified before use.
Key ideas
- The screen requires a rising 30-day average, three simultaneous golden-cross signals, and a daily holdings increase above a threshold.
- The author interprets the conditions as signs of trend strength and investor demand.
- The post suggests excluding distressed-status shares and weak companies and checking for adverse news.
- It warns that fund-flow measures can be misleading and technical signals can conflict across horizons.
- No backtest or performance evidence is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.