A Stock Screen Combining MACD, Low Price, and Earnings Growth
Summary
The document describes a daily Chinese stock screen that selects shares with MACD above zero, a price below 12 yuan, and year-over-year net profit growth attributable to the parent company above 20% and at or below 100%. It presents the screen as a combination of technical and fundamental conditions, with the growth ceiling intended to avoid stocks whose high growth might invite excessive optimism. It also gives example indicator formulas and a Python outline using price and financial data.
The article offers no backtest, performance figures, or evidence that these thresholds predict returns. It notes risks including delayed or unreliable financial data and reliance on too few indicators, and suggests adding other financial measures and reviewing technical conditions. The example code uses intraday prices and includes a time filter that differs from the stated pre-open selection schedule, so it should not be treated as a validated implementation. The strategy is a screening rule, not a complete portfolio or trading plan.
Key ideas
- The screen requires MACD above zero, a share price below 12 yuan, and parent-attributable net profit growth between 20% and 100%.\nIt combines a technical indicator with a fundamental earnings-growth condition.\nThe article proposes a growth ceiling to limit selection of potentially overvalued high-growth shares.\nIt warns that financial data can be delayed or unreliable and recommends considering additional metrics.\nNo evidence or backtest results are supplied to establish the screen’s effectiveness.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.