Screening for Seven Consecutive Down Days with Moderate Turnover

Summary

This equity screen looks for stocks with turnover between 3% and 12%, seven consecutive days of falling prices, and more than a year since listing. The approach emphasizes recent price behavior and trading activity rather than company fundamentals. The document provides a formula and a Python example intended to apply the filters, while noting that indicator names may need adjustment for the data source.

The article offers no performance results or historical validation. Its stated limitations include the exclusion of newer listings and the lack of fundamental analysis. Although the consecutive-decline condition could be used to investigate a possible rebound setup, the document does not specify an entry, exit, or risk-control rule, nor does it establish that a decline is likely to reverse. It proposes adding valuation and operating metrics such as earnings multiples, revenue growth, and gross margin, but does not test those additions.

Key ideas

• The screen combines turnover between 3% and 12% with seven consecutive declining days.
• It requires stocks to have been listed for more than a year.
• The method focuses on price and turnover rather than company fundamentals.
• No return evidence, entry rule, exit rule, or risk-control method is provided.
• The article proposes adding financial measures but does not evaluate their effect.

Tags

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