Combining Price Amplitude, RSI, Beverage Trade Data, and Relative Strength

Summary

This stock-selection proposal combines price amplitude, RSI, and a beverage and alcohol trade filter. The initial conditions are amplitude above one and RSI below 65, alongside an industry screen based on import and export data. Its example implementation keeps stocks in industries where imports are at least as large as exports, then ranks eligible names by relative price strength and retains the strongest fifth. The note also suggests considering industry valuation measures and company financial and governance factors, and describes an intended preference for firms with long-term upward trends, growth, and reasonable valuations.

The document explains the indicators at a high level and provides formulas and sample logic, but it does not define the RSI lookback period, demonstrate that the trade-data filter predicts stock returns, or report a backtest. It acknowledges that relying on one industry condition and technical indicators leaves fundamentals underweighted and may produce unstable selections when industry conditions change. Its broader fundamental and valuation suggestions are not fully specified as testable rules, so the screen would need clearer definitions and empirical evaluation before it could support a systematic strategy.

Key ideas

• The proposed screen combines amplitude above one, RSI below 65, and a beverage industry trade-data filter.
• The example retains industries where imports are at least as large as exports.
• Eligible stocks are ranked by relative price strength, with the strongest fifth selected.
• The note recommends adding valuation, financial, and governance information to improve robustness.
• No backtest or evidence for the predictive value of the industry filter is provided.

Tags

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