Combining Revenue Growth, Relative Volume, and Short-Term Trend Filters

Summary

This document proposes a Chinese equity screen that combines relative volume ranking, price above its five-day moving average, and revenue growth between 2018 and 2021. It describes the revenue condition as growth exceeding a stated ratio threshold, while the title specifies only a ratio greater than one; the body also gives a top-100 relative-volume rank. These inconsistencies make the exact intended screen unclear. The final proposed logic emphasizes relative volume and price above the short moving average, leaving out the revenue condition.

The rationale is that trading interest and short-term price strength may coincide with business growth. The document acknowledges that relative-volume measures do not account for outflows, a five-day average captures only a short horizon, and revenue growth alone does not establish profitability or financial health. It suggests adding measures of flows, longer-term trend, and valuation or financial quality. No backtest or outcome data are provided, so the screening rationale is not supported by performance evidence.

Key ideas

• The proposed screen combines relative-volume ranking, price above a five-day average, and historical revenue growth.
• The body and title differ on the revenue-growth threshold, and the final screen omits that condition.
• Relative volume and a short moving average can miss outflows and longer-term direction.
• Revenue growth alone does not indicate profitability or financial strength.
• The document provides no backtest results to establish the screen's effectiveness.

Tags

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