Stock Screening with Institutional Flow and Moving-Average Filters

Summary

This article outlines a stock-selection screen that combines institutional trading activity with price trends. The initial conditions are a daily increase in reported holdings above a stated threshold, positive institutional direction, and a rising 30-day moving average. The article later presents a modified version that adds valuation limits and uses a rising 5-day average. It also suggests adjusting condition weights or adding filters, and includes example code intended to illustrate screening and ranking.

The rationale is that buying activity may indicate institutional optimism, while a rising average signals an upward short-term trend. The article identifies broad market weakness and stock-specific selection errors as risks, and notes that its proposed signals do not ensure favorable performance. It gives no backtest, benchmark, return series, or validation of the code. The code's calculations and data fields are not fully reconciled with the stated institutional-flow conditions, so the examples should not be treated as a tested implementation. The screen is a hypothesis requiring careful data checks and out-of-sample evaluation.

Key ideas

• The screen combines institutional-flow measures with a rising moving average.
• A later version adds valuation ceilings and a shorter moving-average condition.
• The rationale treats institutional accumulation and upward price trends as potentially favorable signals.
• Market-wide declines and incorrect stock selection remain risks.
• The article provides no performance validation, and its example code may not faithfully measure the stated conditions.

Tags

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