Screening for Seven Down Days, Moderate Turnover, and Past Dividends

Summary

This Chinese-equity selection rule combines turnover between 3% and 12% with seven consecutive declining sessions and a 2019 dividend ratio above 25%. The document includes example indicator and Python-style logic for identifying candidates. It does not present a backtest, selected-stock examples, or evidence that the conditions predict a rebound or deliver returns.

The rationale pairs a falling-price pattern with a historical dividend measure, while the discussion cautions that a high payout in one year may reflect exceptional circumstances and does not establish future potential. It recommends broadening the screen with valuation, market capitalization, company performance, and technical analysis. The dividend year makes the rule tied to a historical data point, and the examples rely on specific definitions for turnover, consecutive declines, and dividend ratio that should be verified against the data source before use.

Key ideas

• The rule requires turnover between 3% and 12% and seven consecutive declining sessions.
• It also requires the 2019 dividend ratio to exceed 25%.
• A high dividend in one historical year does not by itself imply future strength.
• The document suggests adding valuation and company-performance measures but reports no testing results.

Tags

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