Screening Stocks by Turnover and Opening Price Near the 10-Day Average

Summary

This stock selection rule looks for turnover between 3% and 12%, an opening price within five percent of the 10-day moving average, and a prior session that was not a limit-up day. The article presents the opening price and turnover as more representative selection inputs when yesterday’s limit-up stocks are excluded. Its formula and Python example express the price band around the moving average and include additional market-type and prior-session filters.

The stated rationale and code are not accompanied by backtest results or evidence that the screen improves returns. The article notes that excluding recent limit-up stocks can also remove strong candidates, and that relying on historical data may reduce accuracy. It suggests adding fundamental, technical, industry, and market-trend information. The rule is therefore a screening concept, not a complete trading system: it specifies no portfolio construction, execution plan, or exit criteria.

Key ideas

• The screen requires turnover between 3% and 12% and an opening price near the 10-day moving average.
• It excludes stocks that closed at the limit-up level in the prior session.
• The article acknowledges that this exclusion may omit stocks with further upside potential.
• It recommends adding fundamental, technical, industry, and market context.
• No performance evaluation or complete trading plan is provided.

Tags

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