Combining Five-Year ROE, Price Range, and Weekly Momentum Filters

Summary

This stock-selection idea combines a price-range threshold with return on equity above 15% for five consecutive years and a positive weekly chart bar. The stated rationale is to pair sustained profitability with a technical sign of upward price movement. The post also discusses validating the trend with indicators such as MACD or RSI, considering valuation or dividend measures, and using stop-loss and take-profit rules.

The document gives no backtest, sample, or performance evidence, and its proposed rules are described more clearly than they are implemented. The sample code mixes stock-selection language with futures-market data and includes placeholder conditions, so it does not establish a reproducible strategy. Weekly bars can capture short-lived sentiment, while ROE alone cannot describe a company’s full financial condition; the screen should therefore be treated as an outline rather than a validated trading method.

Key ideas

• The proposed screen requires a price range above 1, ROE over 15% for five years, and a positive weekly bar.
• The author suggests using MACD or RSI to confirm the technical signal.
• Valuation and dividend measures are proposed as additional fundamental filters.
• The post recommends risk controls but supplies no tested performance evidence.
• The example code has placeholder logic and uses futures data despite describing stock selection.

Tags

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