Stock Screening by Turnover and Recent Price Gains

Summary

This screening example selects stocks with turnover between 3% and 12% and positive gains over a stated recent period, capped below 35%. It also refers to stocks that performed well in 2021. The accompanying pseudocode adds implementation filters, including excluding some board listings, excluding recent listings and special-treatment stocks, and applying a market-capitalization range. Its exact conditions do not align cleanly with the prose: the code checks daily returns and recent positive sessions in ways that may differ from the stated 10-day cumulative gain rule.

The author frames the approach as a market-activity screen rather than a valuation method, and warns that it can overlook company fundamentals and risk. The post provides no performance statistics or controlled backtest to substantiate the reference to good historical performance. It suggests adding profitability and financial-health measures, but offers no defined model or validation procedure. The strategy description also lacks portfolio construction, entry and exit rules, and risk controls, so it is not a complete trading system.

Key ideas

• The stated screen uses turnover from 3% to 12% and a positive recent gain below 35%.
• The post also refers to stocks that performed well in 2021, without presenting supporting performance data.
• The pseudocode applies additional listing, special-treatment, and capitalization filters, and may not match the prose exactly.
• The author warns that activity-based screening can overlook company value and risk.
• Fundamental measures are suggested, but no backtest, validation method, or complete trading rules are provided.

Tags

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