Screening Stocks for Seven Down Days, Moderate Turnover, and Profit Growth

Summary

This stock-selection note proposes screening for turnover between 3% and 12%, seven consecutive down days, and year-over-year growth in net profit attributable to parent-company shareholders between 20% and 100%. It includes example indicator logic and Python-style pseudocode for applying the conditions to grouped stock data. The article's stated rationale pairs recent price weakness and trading activity with a profitability growth filter, although the intended benefit of selecting a falling stock is not tested.

The suggested extension is to consider macroeconomic conditions, valuation, and trading volume in a broader assessment. The note provides no backtest, transaction rules, benchmark, or evidence that the screen improves returns or reduces drawdowns. Its code also relies on particular field definitions and a close-versus-open test that may not be equivalent to seven consecutive daily declines, so implementation should verify that the data and conditions match the intended rule.

Key ideas

• The screen requires turnover between 3% and 12% and seven consecutive down days.
• It selects firms with parent-attributable net profit growth above 20% and no more than 100% year over year.
• The note suggests incorporating valuation and macroeconomic context, but does not define those additional filters.
• No performance evidence or complete trading rules are supplied.
• The example daily-price condition should be checked against the stated consecutive-decline requirement.

Tags

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