Stock Screening with Moderate Turnover, Three Down Days, and a Rising 30-Day Average

Summary

This stock screen combines turnover between 3% and 12%, three consecutive declining sessions, and an upward-sloping 30-day moving average. The intended selection is a short-term pullback in a stock whose broader average trend is still rising. The document presents the conditions as a way to filter for strong trends while requiring recent weakness, and includes example implementations for a screening formula and a Python workflow.

No backtest, performance statistics, or trade-management rules are provided, so the claimed usefulness of the screen is not demonstrated. The Python example checks closing prices and the moving-average slope but does not visibly enforce the stated turnover range, leaving a mismatch between the written rule and sample implementation. The author also notes that the method omits company fundamentals and may select stocks that continue falling during broader or company-specific deterioration; adding fundamental measures is suggested as a possible refinement.

Key ideas

• The screen requires turnover between 3% and 12%, three consecutive down sessions, and a rising 30-day moving average.
• It combines a short-term pullback condition with a positive longer-term trend filter.
• The document provides formula and Python examples, but the Python example does not visibly apply the turnover filter.
• No performance evidence or exit rules are supplied, and company fundamentals are omitted.

Tags

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