Screening Stocks for Moderate Turnover, Gains, and Three Down Closes

Summary

This post describes a stock screen requiring turnover between 3% and 12%, a positive gain over ten days below 35%, and three consecutive sessions in which each close is lower than the preceding close. The author frames the declining closes as a way to find stocks that have recently pulled back after a positive ten-day move, potentially for a low-buying approach. The post advises adding fundamental and industry context and monitoring policy and market conditions.

The formula reference expresses the stated turnover, gain, and closing-price conditions. However, the Python example does not faithfully implement them: it checks for multiple days with a −10% daily change and compares two closes, rather than applying the stated turnover, ten-day return, and consecutive-decline filters. No backtest results or evidence of profitability are provided, and the screen omits company fundamentals and broader market context.

Key ideas

• The stated screen combines turnover, a positive but bounded ten-day return, and three consecutive lower closes.
• The setup looks for a recent pullback following a positive period, with a possible low-buying interpretation.
• The formula reference represents the stated conditions, while the Python example uses materially different checks.
• The post recommends considering fundamentals, industry conditions, and policy developments.
• No performance evidence is provided, and the screen is based on a narrow set of recent price and turnover data.

Tags

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