Screening 2021 IPOs by Turnover and Price Above the Five-Day Average

Summary

This simple equity screen selects stocks listed in 2021, with turnover between 3% and 12%, and a current price above its five-day moving average. The post presents the rules as a way to combine trading activity, listing age, and a short-term price condition. It includes indicator and Python examples; the code also checks recent turnover and includes a separate price comparison against a ten-day average, so implementation details do not align perfectly with the plain-language rule.

No performance results, backtest design, or evidence that these conditions predict returns are reported. The post identifies key omissions: company fundamentals, relative strength within sectors or industries, and market-style changes. It suggests adding financial and relative-strength measures to broaden the selection process. The criteria are therefore best understood as a screen specification, not a validated strategy, and the listing-year condition makes its eligible universe time-dependent.

Key ideas

• The stated screen requires 2021 listing, turnover from 3% to 12%, and price above the five-day average.
• The code includes additional recent-turnover and moving-average conditions that differ from the stated rule.
• The post gives no backtest results or evidence of profitability.
• It highlights missing fundamentals, sector-relative strength, and sensitivity to changing market styles.

Tags

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