Equity Screening with a Rising Average and Persistent Large-Order Flow

Summary

This stock selection rule targets companies classified in the metaverse theme, with a rising 30-day moving average and large-order net volume above 0.05 on at least three of four recent observations. The note treats the moving average as a trend filter and repeated positive large-order flow as a sign of institutional buying interest. It includes formula and Python examples for expressing the filters.

No historical test, performance statistics, or examples of selected stocks are reported, so the claimed investment advantage remains unverified. The document itself flags risks from short-term noise, reliance on technical conditions, a narrow theme-based universe, and the possibility that a fixed large-order threshold overlooks other flows. Its prose recommends adding valuation measures such as PE and PB and adapting thresholds to market conditions, but it does not test those changes. The code and narrative also differ in how they describe the moving-average condition, making precise implementation worth checking against the intended rule.

Key ideas

• The universe is limited to stocks assigned to the metaverse theme.
• The rule requires an upward 30-day average and large-order net volume above 0.05 on at least three recent observations.
• The note interprets persistent large-order flow as potential buying interest, but gives no evidence that it predicts returns.
• Short-term noise, omitted fundamentals, and fixed flow thresholds are identified as limitations.
• Suggested valuation inputs and adaptive thresholds are not evaluated.

Tags

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