Stock Screening with Turnover, 10-Day Average Proximity, and Institutional Buying
Summary
The proposed equity screen looks for turnover between 3% and 12%, an opening price within 5% of the 10-day moving average, and institutional buying. The formula expresses the institutional condition as the previous period’s buy-word measure exceeding its sell-word measure. The article presents this as a way to combine trading activity, price location, and an institutional-flow signal.
No backtest, return data, or evidence supporting the claim that institutional buying improves success is provided. The discussion warns that the rule omits company finances, industry competition, and broader market direction, and that institutional actions may be delayed or risky. It recommends checking whether institutional activity continues and incorporating financial and market context. The screen is therefore an unvalidated candidate-selection concept, and the document does not provide rules for trade entry, exits, or position sizing.
Key ideas
- The screen requires turnover from 3% through 12% and an opening price within 5% of the 10-day moving average.
- Institutional buying is represented as a prior-period buy measure greater than the corresponding sell measure.
- The article recommends checking institutional-flow persistence and adding financial, industry, and market context.
- No performance evidence or full trade-management rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.