Screening Stocks by Turnover, Rising DEA, and Trading Activity

Summary

The article describes an equity screening rule that selects stocks with turnover between 3% and 12% and a rising DEA indicator, then ranks candidates by trading activity. Its explanation frames the activity ranking as a way to prioritize more popular or actively traded stocks. It includes reference formulas and a Python-style workflow: filter on turnover, calculate DEA, retain stocks whose DEA has increased, and sort by volume in descending order.

The article cautions that the screen omits fundamental factors and may therefore include expensive stocks. It suggests adding valuation measures such as price-to-earnings, price-to-book, or PEG, as well as price-volume and capital-flow analysis. No backtest, return data, benchmark, or assessment of transaction costs is supplied. The described signal is therefore a candidate-generation method, and the article’s risk discussion does not establish that popularity or a rising DEA predicts future performance.

Key ideas

• The screen retains stocks with turnover between 3% and 12% and a rising DEA reading.
• Candidates are ordered by trading volume from highest to lowest.
• The article provides both indicator-style formula references and a data-filtering workflow.
• The screen does not include fundamental valuation measures and may select expensive stocks.
• No performance test or trading-cost analysis is reported.

Tags

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