A MACD and Price-Momentum Screen for Main-Board Stocks

Summary

This stock-selection proposal filters for main-board shares with MACD above its zero line, a daily rise exceeding one percent, and a positive ten-day return below thirty-five percent. The accompanying example calculates MACD from fast and slow exponential moving averages and a signal line, then buys qualifying names and sells holdings that no longer qualify. It describes equal allocation of portfolio value across selected stocks.

The post warns that the combined filters may leave a small universe, concentrate decisions in technical indicators, and exclude otherwise attractive stocks. It suggests widening thresholds, combining technical and fundamental measures, and adjusting the return range to market conditions. The document offers formula and implementation examples but no backtest or return evidence. It also leaves important design details unresolved, including how the main-board universe is identified, how empty or very small selections are handled, and how transaction costs, liquidity, and timing affect results.

Key ideas

• The screen combines positive MACD, a strong daily move, main-board membership, and a bounded ten-day return.
• The example allocates portfolio value across qualifying stocks and exits positions that fail the screen.
• The author notes that multiple filters may reduce diversification and narrow the candidate pool.
• The proposal relies on technical signals and gives no backtested evidence of performance.
• The implementation leaves universe definition and several portfolio-handling details unclear.

Tags

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