Stock Screening by Turnover, Float Size, and Reported Control

Summary

This stock-selection idea filters for shares with a moderate turnover rate, a limited circulating share base, and a platform-reported indication of main-player control on the prior day. The post frames the turnover and float conditions as measures of liquidity and company size, while the control label is meant to reflect activity by large market participants. Its code example approximates that label with positive net major buying and an up-close condition.

The article cautions that focusing on short-term capital flows can encourage trend-chasing and risk taking, and suggests incorporating valuation or earnings measures. It gives no backtest or evidence that the filters predict returns. The meaning and reliability of the reported control measure are not established, and the stated screen conditions and implementation example are not fully aligned, limiting reproducibility.

Key ideas

• The proposed screen combines a turnover band, a cap on circulating shares, and a prior-day control signal.
• The code example approximates control using positive net major buying and a close above the open.
• The post recommends adding fundamental measures such as valuation or profits.
• No results are reported, and the control indicator’s definition and predictive value remain unclear.
• The post warns that short-term flow signals can encourage risky trend-following.

Tags

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