Screening Main-Board Stocks by Turnover, Gains, and Lower Lows

Summary

This note proposes screening main-board stocks for turnover between 3% and 12%, a daily gain above 1%, and a current-day low below the prior day’s low. It frames the turnover and gain requirements as measures of activity and strength, while the lower low adds a price-structure condition. The article recommends supplementing this screen with company fundamentals and more detailed trend or momentum measures.

The document supplies formula and Python examples, but does not provide backtest results or evidence that the combined conditions improve returns. The formula’s stated price conditions do not consistently express the lower-low rule, and the Python example narrows the market universe in a way that may not cover all main-board stocks. The author also notes that the screen omits company quality and that a lower low can occur in a declining trend. These limitations make careful validation and universe definition important before use.

Key ideas

• The proposed screen combines turnover between 3% and 12%, a gain above 1%, and a lower intraday low than the prior day.
• The note treats turnover and price gain as activity and strength filters.
• It recommends adding fundamental measures and more detailed trend or momentum analysis.
• The code does not consistently match the described rule, and the document reports no test results.

Tags

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