Screening Recent IPOs by Turnover and Price Above the 250-Day Average

Summary

The post describes an equity screen for recently listed stocks, requiring turnover between 3% and 12% and the prior close above a 250-day moving average. It frames turnover as a measure of activity and liquidity, with the moving-average condition intended to favor stocks in an upward trend. Example code is provided for building a stock list, retrieving price history, checking the conditions, and applying additional volume and market-cap filters.

The description and implementation leave important details uncertain. The title refers to 2021, while the written rule says stocks listed in the current year; the code uses the runtime year. The code also calculates a rolling average from retrieved daily closes, while the prose describes the prior close and the indicator’s timing is not fully reconciled. No backtest, benchmark, or transaction-cost analysis is reported. The post notes that the screen omits company fundamentals and relies on historical prices, making it a heuristic rather than a validated strategy.

Key ideas

• The screen selects recent listings with turnover between 3% and 12% and a prior close above a 250-day average.
• The post presents turnover as an activity and liquidity filter and the moving average as a trend filter.
• The title’s year reference conflicts with the rule and code, which refer to the current year.
• The implementation adds volume and market-cap filters beyond the headline conditions.
• No performance evidence is given, and the post notes that fundamentals are not considered.

Tags

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