Screening Stocks by Turnover, the 10-Day Average, and Recent Lows

Summary

This proposed Chinese equities screen selects stocks with turnover between 3% and 12%, an opening price within 5% of the 10-day moving average, and a recent seven-day low condition. The post presents the combination as a way to find active stocks amid a decline, using turnover for trading activity and the moving average and recent price lows as technical filters. It warns that a sharp rebound after a losing stretch can create losses and suggests considering broader market conditions, capital flows, holding periods, and risk controls.

The post includes formula and Python examples, but the implementation does not clearly match its description of seven consecutive declining sessions: it checks whether the current low equals the lowest low over seven periods. It gives no backtest, performance evidence, entry or exit plan, or position-sizing rules. The screen should therefore be treated as an unvalidated selection hypothesis, and its lookback logic and risk controls would need to be specified and tested before practical use.

Key ideas

• The screen combines a turnover range, an opening price near the 10-day moving average, and a seven-period low condition.
• The author associates the criteria with active stocks during a decline and warns of sharp reversals.
• The sample formula checks for a recent lowest low, which is not the same as seven consecutive down sessions.
• No backtest, exit rules, or position-sizing method is provided.

Tags

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