Screening Main Board Stocks for Turnover, Relative Gains, and Three-Day Declines

Summary

The document presents a short-term Chinese equity screening rule for main-board stocks. It selects shares with turnover between 3% and 12%, a daily gain above 1% relative to the stated comparison, and declines over three consecutive days. The idea combines a liquidity filter with a recent pullback condition, seeking stocks that have fallen for several sessions but show a positive move on the screening day. The article characterizes this as a possible contrarian setup and suggests adding fundamental quality checks to improve the selection process.

It includes example screening logic and a Python illustration for retrieving stock and price data, but does not report a backtest, transaction costs, or realized results. The text itself warns that a short-term price pattern does not capture company fundamentals and that a temporary decline can continue into a longer downtrend. The rule is a candidate-generation screen, not a complete trading system: it leaves portfolio sizing, execution, holding period, and exit conditions unspecified.

Key ideas

• The screen combines a 3% to 12% turnover range with a daily gain above 1% and a three-day declining-price condition.
• The setup is presented as a short-term contrarian screen for main-board shares.
• The article suggests considering company fundamentals alongside the recent price pattern.
• A sequence of declines may continue into a longer downtrend, so the screen does not establish a reversal.
• The document provides example implementation logic but no backtest or trading-performance evidence.

Tags

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