Combining Price Range, Main-Force Activity, and Revenue Growth in Stock Screening

Summary

This post proposes screening equities using three conditions: a minimum price range, a signal described as main-force control on the previous day, and a revenue ratio comparing 2021 with 2018 that exceeds a stated threshold. The method is framed as a combination of technical activity and a multi-year business growth measure. It includes illustrative formula and Python snippets, but the implementation details are inconsistent: the prose and code differ on the revenue threshold, and the examples do not clearly establish reliable data handling for the historical comparison.

The author notes that revenue growth alone does not establish company value and can be affected by expectations or other influences. Suggested refinements include considering valuation, return on equity, and profit growth, and adjusting factor weights to suit the investor. The post gives no screening results, backtest, or evidence that the “main-force” signal is predictive. The criteria should be treated as a proposed filter requiring precise definitions and validation.

Key ideas

• The proposed screen combines a price-range condition, a previous-day main-force signal, and historical revenue growth.
• The revenue comparison uses 2021 and 2018 figures, though the stated threshold varies across the post.
• The author recommends adding valuation and profitability measures such as price-to-earnings and return on equity.
• Revenue growth may not reflect underlying value and should be assessed alongside market conditions.
• No backtest or evidence is provided for the predictive value of the combined screen.

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