Chinese Stock Screening with Price Shape, Amplitude, and ROE Filters

Summary

This Chinese-language post proposes a stock screen combining price amplitude, a rounded price pattern, and sustained return on equity above a stated threshold. Its example formula adds further technical conditions: recent price position within a range, a minimum range over a longer lookback, positive placement relative to moving averages, and distance above those averages. The stated rationale is to seek stocks with price activity and a constructive chart shape while favoring companies with a record of profitability.

The post cautions that ROE alone may not capture a company’s financial condition and that technical filters alone can overlook fundamentals. It suggests combining measures such as profit growth and operating cash flow with macroeconomic and industry context; it also mentions machine learning as a possible optimization approach. The formula is a screening proposal, not a documented trading system: no entry or exit process, portfolio rules, backtest results, benchmark, or transaction-cost analysis is provided. The Python implementation is absent, so the example formula is the only concrete implementation detail.

Key ideas

• The proposed screen combines price amplitude, a rounded price pattern, and consistently high ROE.
• Its example formula adds range-position and moving-average conditions to the headline filters.
• The post recommends considering profit growth, operating cash flow, industry conditions, and macroeconomic context.
• It warns that ROE alone and technical filters alone provide incomplete views.
• No backtest results, portfolio rules, or complete Python implementation are supplied.

Tags

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