A Thematic Equity Screen Using Long-Term Trend and Intraday Drawdown

Summary

The document describes a stock-selection screen for equities in a metaverse-related theme. Its stated conditions combine theme membership, a price above a long-term moving average, and a large intraday decline. The rationale is to select thematic stocks that remain above a long-term trend reference despite a sharp pullback. The page also includes an implementation example and mentions possible additions such as momentum indicators and company financial measures.

The screen is presented without backtest results, performance statistics, or evidence that the conditions predict returns. The article also contains an inconsistency: its initial rule refers to the 250-day moving average, while its final description and sample logic refer to a five-day average. Its risk discussion acknowledges that the drawdown threshold is subjective and may fail to capture market direction. Treat the rules as an illustrative screening idea rather than a validated strategy.

Key ideas

• The proposed screen combines thematic equity membership, a moving-average condition, and a sharp daily low-price decline.
• The document gives conflicting moving-average horizons, so the intended trend filter is ambiguous.
• It provides no historical performance evidence or risk-adjusted evaluation of the screening rule.
• Additional technical and fundamental variables are suggested as possible filters.

Tags

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