Screening Seven-Day Decliners for Turnover and Large-Order Inflows

Summary

This stock-selection idea looks for shares with turnover between 3% and 12%, seven consecutive declining sessions, and large-order net inflows above 0.05 for at least three days. The rationale is contrarian: a sustained decline may leave a stock vulnerable to a rebound, while persistent large-order buying is treated as a possible sign of institutional interest. The author frames it as a short-horizon screen and suggests combining it with fundamental analysis.

The document gives formula and Python examples, but the implementations appear inconsistent with the prose. In particular, checking whether the latest close equals the seven-day low does not by itself establish seven consecutive down sessions; the formula also sums positive flows over three days, which may differ from requiring each day to exceed the stated threshold. No backtest or performance evidence is presented. The author notes exposure to market-wide noise, the limits of interpreting order-flow data alone, and the need for risk controls and diversification.

Key ideas

• The screen combines turnover between 3% and 12% with a seven-session decline pattern.
• It seeks large-order net inflows above 0.05 over at least three days.
• The proposed rationale is that buying interest during a decline could precede a rebound.
• The provided formula and code may not fully capture the stated consecutive-day conditions.
• The document offers no performance results and flags market noise and incomplete order-flow interpretation.

Tags

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