Screening Stocks by Turnover, Rising DEA, and Outstanding Convertible Bonds

Summary

This stock screen combines three conditions: turnover between 3% and 12%, a rising DEA signal, and a nonempty convertible-bond name whose bond status is outstanding. The post provides equivalent screening logic in a charting formula and a Python-style data workflow. Its DEA condition uses the relationship between 12- and 26-period moving averages and a 9-period average of their difference, alongside a requirement that the moving-average spread is increasing. The resulting screen seeks stocks with a bounded level of trading activity, a bullish technical signal, and an outstanding convertible bond.

The post does not report backtest results, returns, or risk statistics, and it warns that the screen omits company fundamentals and industry context. The supplied rules are a selection filter, not a complete portfolio or trading system: they do not specify entry timing, exits, position sizes, execution assumptions, or how to handle missing or stale bond data. The author recommends adding fundamental and sector information and adapting indicator parameters to market conditions.

Key ideas

• The screen restricts stock turnover to the stated range of 3% to 12%.
• It requires the DEA indicator to be rising, based on moving-average relationships.
• It selects companies with an outstanding convertible bond and a recorded bond name.
• The post supplies both charting-formula and Python-style versions of the filter.
• The screen omits fundamental and industry analysis and reports no performance evidence.

Tags

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