Screening Main Board Stocks by Turnover, Gains, and Moving Averages
Summary
This note describes a main board stock screen combining a daily market move with turnover and moving average conditions. It selects stocks with turnover between 3% and 12%, a daily gain above 1%, and at least five moving averages said to converge. The stated rationale is to find actively traded stocks showing strength and a possible trend. The note also suggests adding fundamental measures, such as valuation or financial indicators, and checking moving average crossovers to refine the selection.
No performance results or backtest evidence are provided. The examples include indicator and Python snippets, but their conditions do not consistently implement the written rule: the formula's return calculation appears inconsistent with a gain above 1%, while the Python example checks a single moving average in a malformed comparison rather than five converging averages. The stated risks include ignoring company fundamentals and treating moving average convergence alone as a potentially weak short-term signal. The screen is therefore a selection concept, not a validated trading strategy.
Key ideas
- The screen targets main board stocks with turnover between 3% and 12%.
- It requires a daily gain above 1% and at least five converging moving averages.
- The note proposes adding fundamental measures and moving average crossover checks.
- It provides no performance evidence, and its code examples do not clearly match the stated screening conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.