Stock Screening with Turnover, KDJ Momentum, and a Rising 30-Day Average

Summary

This stock selection method filters for turnover between 3% and 12%, a rising KDJ K value, and an upward-sloping 30-day moving average. Its formula reference additionally requires the latest close to be above that average, making the screen a short-term trend and momentum filter. The Python example checks turnover using its mean across the supplied data, then compares the latest close and moving average with prior values, and checks whether KDJ K has increased.

The document explains that these conditions focus on technical behavior and do not assess company fundamentals. It suggests adding valuation measures and other indicators to broaden the screen, while warning that a 30-day average alone has limited predictive ability. No backtest, performance data, or evidence of predictive advantage is provided. The sample code's turnover averaging and closing-price condition may also differ from the simpler verbal rule, and its final explanatory text mentions a weekly crossover that the code does not implement.

Key ideas

• The screen selects stocks with turnover between 3% and 12%, rising KDJ K, and an upward-moving 30-day average.
• The formula reference also requires price to be above the 30-day average.
• The Python example measures average turnover over available rows and compares the latest observations.
• The approach uses technical signals and does not incorporate company fundamentals.
• The document provides no performance evidence and notes that the screen's predictive capacity is limited.

Tags

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