Stock Screening with Turnover, KDJ Momentum, and Revenue Growth

Summary

This article describes a Chinese stock screening rule that combines a turnover range of 3% to 12%, a rising K value in the KDJ indicator, and revenue growth: revenue in 2021 must exceed the 2018 figure by more than 10%. Its example formula also excludes stocks in a specified board category, and the Python illustration groups market data by stock before applying the conditions.

The rationale is to pair a technical momentum signal with a liquidity filter and a measure of company growth. The article warns that the rule omits broader price and capital-flow conditions, and that market, macroeconomic, industry, and company risks can undermine the screen's expectations. It suggests considering valuation, trading activity, returns, and operating cash flow as additional filters. No backtest results or performance evidence are provided, and the code's turnover averaging and field references should be checked against the intended data definitions before use.

Key ideas

• The screen requires turnover between 3% and 12% and a rising KDJ K value.
• It selects companies whose 2021 revenue is more than 10% above their 2018 revenue.
• The example implementation also excludes stocks in a designated board category.
• The author proposes adding valuation, trading, or cash-flow measures to refine selection.
• The article reports no performance test and warns that market and company risks remain.

Tags

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