A Stock Screen Using Amplitude, Prior MACD, and 2021 Performance

Summary

This Chinese equity screening concept combines three criteria: amplitude above 1, a MACD reading below zero two days earlier, and favorable stock performance during 2021. It is framed as a way to consider volatility, a technical indicator, and past market performance together. The article does not define what qualifies as favorable performance, specify a holding period, or provide executable screening logic; the formula and Python sections are explicitly left for later completion.

The author flags the use of historical performance as a potential source of overfitting and notes that the approach neglects company fundamentals. The article also warns that relying on a relatively short reference period may produce overly optimistic impressions. It suggests validation across multiple periods and adding company, industry, and broad-market factors. No test results or evidence of predictive value are presented, so this is an incomplete screening proposal rather than an evaluated trading strategy.

Key ideas

• The proposed screen combines amplitude above 1, a MACD value below zero two days earlier, and strong performance in 2021.
• The article does not define the performance criterion or provide completed implementation details.
• Using historical winners may create overfitting and may not generalize to other periods.
• The author recommends multi-period validation and consideration of fundamentals and market context.

Tags

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