Selecting High-Turnover Stocks with a KDJ Cross and Turnover Ranking

Summary

The proposed stock screen looks for turnover between 3% and 12% and a KDJ golden cross, then ranks candidates. The initial description says to choose the five largest by today’s auction amount, interpreting that activity as a sign of buying interest. The final stated rule changes the ranking: it adds market capitalization above 1 billion and calls for the five stocks with the highest daily turnover weighting. The post includes formula and sample code references, though the code appears to sort by turnover rate rather than auction amount.

The author describes turnover as a liquidity filter and the KDJ cross as a trend signal. Risks include auction activity being influenced by large investors and the omission of fundamentals and macroeconomic conditions. Suggested improvements include confirming the signal with volume measures, adding valuation metrics, and using a turnover-weighted ranking. There are no backtest results or performance data to establish the strategy’s effectiveness.

Key ideas

• The basic screen combines turnover of 3%–12% with a KDJ golden cross.
• The opening description ranks by auction amount, while the final rule instead specifies turnover-weighted ranking and adds a market-capitalization floor.
• The post treats turnover as a liquidity measure and the KDJ cross as a trend signal.
• Auction activity may be affected by large investors, and the screen omits fundamental and macroeconomic factors.
• No empirical performance results are supplied.

Tags

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