Screening Stocks by Turnover, Three Down Days, and the Ten-Day Average

Summary

This post describes a Chinese equity screening rule combining turnover, recent price movement, and the ten-day moving average. It selects stocks with turnover between 3% and 12%, three consecutive declining sessions, and an opening price near the ten-day average. The page includes indicator-style and Python examples intended to implement the screen, alongside a general suggestion to add company, growth, or industry criteria and risk controls.

The post presents no backtest, performance figures, or evidence that the selected stocks have greater future potential. Its implementation examples do not consistently match the stated rule: one expression uses moving-average behavior to represent the decline condition, while the Python sample compares closing prices and appears to compare the open with the close rather than the ten-day average. The rule is therefore best understood as a screening hypothesis that requires careful implementation and independent testing; it also omits fundamentals and other sources of risk.

Key ideas

• The stated screen requires turnover between 3% and 12% and three consecutive down sessions.
• It also requires the opening price to be near the stock’s ten-day moving average.
• The post suggests adding fundamental or industry filters and risk controls.
• The examples do not consistently implement the written conditions.
• No backtest or performance evidence is included.

Tags

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