Stock Screen Combining Turnover, a 10-Day Average, and Revenue Growth
Summary
This post proposes a Chinese equity screen using turnover between 3% and 12%, an opening price within 5% of the 10-day moving average, and revenue growth: 2021 revenue must exceed 1.1 times 2018 revenue. It frames turnover and the opening-price condition as filters on market activity and short-term price position, while the revenue comparison is intended to remove companies with declining or weakly growing sales. The post includes formula and Python examples for applying the conditions.
No backtest, selected-stock examples, or return statistics are provided, so the post offers a screening recipe rather than evidence of effectiveness. It acknowledges that the rules omit other financial considerations, including profitability and valuation, and suggests adding measures such as dividend yield or net-profit growth. The revenue comparison uses historical years and does not establish future growth; turnover and proximity to a moving average also do not by themselves indicate investment quality.
Key ideas
- The screen requires turnover between 3% and 12%.
- It selects opening prices within 5% of the 10-day moving average.
- It requires 2021 revenue to be more than 1.1 times 2018 revenue.
- The post notes that profitability and valuation are omitted and provides no evidence of strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.