Screening Stocks for Moderate Turnover and Three Consecutive Down Days

Summary

This proposed stock screen looks for turnover between 3% and 12%, three consecutive sessions with declining closes, and a current low below the prior session’s low. The author frames it as a way to find recently weakening stocks that might have rebound potential. The post includes example formula and Python logic for applying the conditions to market data.

The article provides no backtest, return evidence, or rules for entries, exits, and position sizing. Its prose describes three falling sessions, while the supplied code uses moving-average comparisons in one version and close-price comparisons in another; the turnover calculation in the Python example also appears inconsistent with the stated turnover filter. The author notes that the short lookback can be risky and suggests adding technical, fundamental, listing-age, size, or industry filters. The screen should be treated as an unvalidated candidate-generation rule until its definitions and data handling are checked.

Key ideas

• The screen combines a turnover band with three declining sessions and a lower current low.
• The strategy is intended to identify recent weakness that may be followed by a rebound.
• The post supplies example code, but its turnover and down-day calculations need verification.
• No performance evidence or full trade-management rules are provided.
• The author recommends additional filters and cautions about the short observation period.

Tags

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