Combining MACD, Revenue Growth, and a Rising 30-Day Average for Stock Selection

Summary

This stock selection example combines a positive MACD reading, a rising 30-day moving average, and a revenue comparison. The stated rule requires the latest annual revenue measure divided by the measure from three years earlier to exceed 1.1. The accompanying example selects from a large-cap Chinese stock universe, excludes suspended or specially designated shares, filters candidates further by an up day, and ranks purchases using price-to-sales. It also illustrates a loss exit tied to each holding’s cost basis and a cap on the number of positions.

The article explains that MACD and the moving average represent short-term momentum and trend, while revenue growth adds a fundamental screen. It warns that short-term signals can cause frequent trading, may behave differently across sectors and market regimes, and can be vulnerable to pullbacks. It recommends considering longer-term trend measures, adapting parameters, and applying risk controls. No backtest results or evidence of profitability are supplied, and the revenue field’s exact data definition is not clarified.

Key ideas

• The stock screen requires MACD above zero, a rising 30-day moving average, and revenue growth above a stated threshold over a three-year comparison.
• The example applies the screen to a large-cap Chinese stock universe and filters out suspended or specially designated shares.
• The sample trading logic includes an up-day entry condition, price-to-sales ranking, a limit on holdings, and a cost-based loss exit.
• The document warns that short-term indicators can lead to frequent trading and may not suit every sector or market environment.
• It provides no performance results, and the precise revenue data field is not explained.

Tags

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