Combining Moving-Average Confluence, Market Capitalization, and Revenue Growth
Summary
The document describes a Chinese equity screen that combines at least five overlapping moving averages, a circulating market value above 200 million, and revenue in 2021 exceeding 1.1 times revenue in 2018. The moving-average condition is presented as a way to find stable price trends, while the market-value and revenue filters are intended to reflect liquidity and business growth. The title's ratio threshold differs from the body, which specifies 1.1.
The post offers qualitative reasoning rather than measured performance: it provides no portfolio results, benchmark, or backtest. It acknowledges risks from data errors, the screen's simplicity, and changing market conditions. It suggests considering valuation, dividends, and return on equity, alongside trading and portfolio methods such as trend following, mean reversion, volatility control, and diversification. These are general suggestions rather than a fully specified or tested strategy; the example code is incomplete and does not implement the described screen.
Key ideas
- The screen combines moving-average overlap with market-value and historical revenue-growth filters.
- The body specifies a 2021-to-2018 revenue ratio above 1.1, despite the title's different threshold.
- The post gives qualitative rationales but reports no backtest or investment performance.
- It identifies data quality, omitted company factors, and market-regime changes as limitations.
- It suggests adding valuation and profitability measures and using diversification and risk controls.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.