Combining Moving Average Crossovers with Amplitude and Industry Filters

Summary

The post proposes a Chinese equity screen for beverage and alcohol import or export stocks. It combines an amplitude threshold with three moving averages aligned in a bullish order, described as simultaneous golden crosses, then selects a limited number of qualifying names. Its example refers to short-, medium-, and longer-window averages and suggests considering market conditions and sector performance when choosing among candidates.

The author warns that this short-term technical and industry screen omits company fundamentals, including financial condition and governance, and suggests adding sector returns, valuation, research investment, and macro context. The included code and formulas are presented as references and may require modification; they do not establish a reliable implementation or demonstrate returns. No backtest results or evidence of excess performance are provided, and the screening rules alone do not specify portfolio sizing or risk controls.

Key ideas

• The proposed screen combines a price-amplitude threshold with a bullish alignment of three moving averages.
• It limits candidates to stocks in beverage-related industries and proposes selecting a fixed number for investment.
• The post identifies missing fundamental analysis and recommends considering valuation, sector performance, and macro conditions.
• The example formulas and code are references requiring adaptation, with no performance evidence supplied.

Tags

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