Screening Stocks by Turnover, Three Down Days, and Positive P/E

Summary

The document presents a stock screen combining daily turnover between 3% and 12%, three consecutive declining sessions, and a positive price-to-earnings ratio. It frames the turnover band as a liquidity or activity filter, the price pattern as a technical condition, and positive P/E as a basic fundamental screen. It also supplies example implementations in indicator syntax and Python, plus general suggestions to combine more indicators and use valuation data such as dynamic P/E.

The examples are not fully consistent with the stated screen: the indicator code uses a falling three-period moving average and a separate moving-average condition, while the Python example compares closing prices and includes an additional close-versus-open check. The document gives no backtest, benchmark, or performance evidence. Its own cautions are that historical price patterns may not predict future moves, screening choices can be subjective, and P/E has limitations. Treat the rules as a candidate filter requiring data checks and independent evaluation, not as a demonstrated trading strategy.

Key ideas

• The proposed screen combines turnover from 3% to 12%, three declining sessions, and positive P/E.
• It mixes a technical price pattern with a simple valuation condition.
• The indicator and Python examples implement differing versions of the stated rules.
• The document provides no performance evidence and warns that historical patterns and P/E can be unreliable.

Tags

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