A Stock Screen Combining Trading Range, ROE, and Moving Averages

Summary

This Chinese-language post proposes screening stocks by combining a minimum daily trading range, sustained return on equity, and an upward price trend. The stated rule calls for a range of at least one, ROE above 15% for five consecutive years, and a weekly price crossing above its 30-week moving average. It then suggests adding revenue growth above 10% and gross margin above 20% as further quality filters. The article includes formula and Python examples, although the sample code compares closing price with a 30-period rolling average and does not clearly implement the stated weekly crossover.

The post flags uncertainty from relying on historical fundamentals, the lag in moving averages, and the possibility that ROE screens may exclude newer or loss-making firms. It suggests monitoring market and policy conditions and using additional signals when a moving-average cross reverses. No backtest, transaction costs, benchmark comparison, or evidence of profitability is supplied. The screen is thus a proposed combination of technical trend and company fundamentals, not a validated strategy.

Key ideas

• The proposed screen combines trading range, five years of strong ROE, and a moving-average trend condition.
• Additional suggested filters are revenue growth and gross margin thresholds.
• The code example may not implement the stated weekly crossover precisely.
• Historical financial data and lagging averages can create screening limitations.
• The article provides no backtest or evidence of investment performance.

Tags

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