Screening Stocks by Turnover, Order Flow, and Circulating Share Capital

Summary

The proposed stock screen selects shares with turnover between 3% and 12%, an external-to-internal trading volume ratio above 1.3, and circulating share capital no greater than 5.5 billion shares. The post frames turnover as a liquidity measure, the volume ratio as an indicator of trading activity, and the share-capital cap as a way to exclude larger-capitalization names. It includes example selection logic, although the code also imposes price-range conditions that are not included in the plain-language rule.

No test results or return data are supplied, so the screen's predictive value is not established. The author notes that the cap may exclude successful larger-share-base companies and may still admit weaker smaller ones; policy and other external risks can also affect results. Additional price-trend or sentiment filters are suggested, but the document does not specify how to evaluate them. The criteria should be treated as a candidate screen requiring consistent data definitions and backtesting.

Key ideas

• The stated screen requires turnover from 3% to 12%, a volume ratio above 1.3, and circulating shares at or below 5.5 billion.
• The post associates turnover with liquidity and the volume ratio with market activity.
• The code includes extra price-range conditions absent from the plain-language selection rule.
• The share-capital filter can exclude larger companies while still selecting weak smaller companies.
• The document reports no evidence that the screen improves investment returns.

Tags

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