Chinese Stock Screen Combining Weekly Moving Averages and ROE

Summary

This stock-selection approach combines a daily price-range condition, a weekly moving-average condition, and a profitability filter. It seeks shares with an amplitude above 1%, a weekly five-period moving average crossing above the ten-period average, and return on equity above 15% for five consecutive years. The stated rationale is to combine price activity and an improving trend with sustained profitability. The document also includes example formulas and Python-oriented code using daily, weekly, and financial-indicator data.

The post advises adding industry and market analysis because its criteria do not cover broader risks. It provides no historical test, return statistics, or comparison against a benchmark. In addition, the example code checks whether the shorter average is currently above the longer one, which does not by itself confirm that a fresh crossover occurred; its financial-data check also needs care to ensure it represents the intended five-year period. The screen is a candidate filter, not evidence of future performance.

Key ideas

• The screen requires daily amplitude above 1% and a weekly five-period average above the ten-period average.
• It also requires ROE above 15% across five consecutive years.
• The approach combines price behavior with a measure of company profitability.
• The document recommends considering industry and market risks as well.
• The example code does not clearly establish a fresh crossover or verify the exact five-year window.

Tags

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