Equity Screening with Turnover and a Ten-Day Moving Average

Summary

This stock selection method combines a turnover range of 3% to 12% with an opening price within 5% of the ten-day moving average. It adds a qualitative “main uptrend starting” signal, intended to identify a possible shift toward a stronger rising trend. The document gives formula and Python examples for applying these conditions, but does not define the trend signal itself or report backtest results.

The author notes that technical signals can overlook company fundamentals and that judging the start of an uptrend can be subjective. Suggested refinements include checking fundamentals and industry conditions, combining indicators such as RSI and MACD, and specifying clearer rules for the trend signal. These additions are recommendations, not tested improvements; the document provides no evidence that the screen is profitable or suitable for any particular market regime.

Key ideas

• The screen requires turnover between 3% and 12%.
• The opening price must be within 5% of the ten-day moving average.
• A separate, undefined signal is meant to indicate that a strong rising trend may be beginning.
• The document recommends adding fundamental and industry analysis to the technical screen.
• It provides no performance results and warns that the trend judgment is uncertain.

Tags

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