Small-Cap Stock Screening with Turnover and Moving-Average Convergence

Summary

This proposed screen combines a market-cap limit below 10 billion yuan, turnover between 2% and 9%, and convergence among the 5-, 10-, 20-, 30-, and 60-day moving averages. It also describes selecting stocks without losses, though the meaning of that condition is not clearly defined. The post suggests ranking qualifying stocks by market capitalization and taking the smallest N, and discusses possible additions such as valuation measures and further moving averages.

The explanation presents small capitalization and turnover as filters for potential growth and market activity, while acknowledging exposure to broad-market weakness and short-term price swings. It reports no backtest or performance evidence. The definition of convergence is unclear: the text describes the five averages as equal, but also refers to their average, and exact equality is not a practical tolerance rule. The sample code is incomplete and appears to apply price-average functions to turnover and market-cap data, so it should not be treated as a faithful implementation.

Key ideas

• The proposed screen uses a market-cap ceiling, a turnover band, and convergence among five moving averages.
• The document describes ranking qualifying stocks by market capitalization and selecting the smallest ones.
• It does not define the no-loss condition or a practical tolerance for moving-average convergence.
• The sample code is incomplete and does not clearly implement the stated screening rules.
• The post identifies market-wide weakness and short-term volatility as risks but provides no performance evidence.

Tags

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