Screening Recent IPOs by Turnover and Proximity to the 10-Day Average

Summary

This note proposes screening Chinese stocks listed in 2021 for daily turnover between 3% and 12%, then keeping those whose opening price is within five percent of the 10-day moving average. The approach combines a trading-activity range, an IPO-year cohort, and a short-term price reference. The article frames the moving-average condition as a technical filter and suggests that market conditions can affect how well it works.

The post offers formula and Python examples, but it reports no historical results or evidence that these rules generate returns. The sample implementation has potential data and definition mismatches, including how turnover and the moving average are calculated, so its output would need validation against the intended screening criteria. The note also recognizes that moving-average signals can lag during sharp market changes and that omitting other market, company, or industry factors may exclude relevant information. It is a screening recipe rather than a tested trading strategy.

Key ideas

• The proposed universe is stocks whose listing year is 2021.
• The screen requires turnover between 3% and 12% and an opening price within five percent of the 10-day moving average.
• The method combines trading activity, IPO cohort selection, and a short-term technical reference.
• The article provides example formulas and code but no reported strategy results.
• Data definitions and sample calculations would need checking before the screen could be evaluated.

Tags

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