Screening Stocks by Turnover and Proximity to the Ten-Day Average

Summary

This stock selection rule screens for turnover between 3% and 12%, an opening price within 5% of the ten-day simple moving average, and circulating market capitalization above 10 billion yuan. The document frames turnover as a measure of trading activity, proximity to the moving average as a price-trend condition, and market capitalization as a size filter. It provides a technical formula and a Python example intended to identify stocks meeting these criteria.

The article notes that the screen may select companies with weak market performance because it omits fundamentals and earnings. It also points out that circulating capitalization alone does not capture other valuation or size measures, and suggests incorporating total capitalization, valuation, company results, and industry competition. No backtest, selected-stock results, or evidence of predictive value is supplied. The code example’s data fields and market filters may not align cleanly with the written rule, so its implementation would need validation against the intended definitions.

Key ideas

• The screen requires turnover from 3% to 12% and an opening price within 5% of the ten-day average.
• It also applies a circulating market capitalization threshold of 10 billion yuan.
• The rule combines trading activity, recent price position, and company size without evaluating fundamentals.
• The article recommends considering additional valuation, financial, and industry information.
• No performance evidence is provided, and the sample implementation may not match the stated rule exactly.

Tags

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