Equity Screening with High Amplitude, Persistent ROE, and Recent Highs

Summary

This stock selection idea combines a price range condition, sustained profitability, and a recent price high. It seeks shares whose high-to-low movement exceeds a volatility threshold, whose return on equity stayed above 15% for five consecutive years, and whose price meets a two-day high condition. The post also describes ranking candidates by trading value as a way to favor stronger capital activity.

The author cautions that a two-day high can be distorted by short-term noise, and a long record of high ROE does not ensure future profitability. Price amplitude is also a simple measure that omits other sources of volatility. Suggested refinements include broadening the high-price lookback and adding trend indicators or more complex models. The post provides formula and Python examples, but no backtest, performance figures, or evidence that the screen predicts returns. Its formula examples may not implement every stated condition consistently, so the criteria require careful definition before evaluation.

Key ideas

• The screen combines price amplitude, five years of high ROE, and a recent high-price condition.
• It proposes ranking qualifying stocks by trading value.
• Short lookbacks can make price highs sensitive to temporary fluctuations.
• Past ROE does not guarantee that profitability will continue.
• The post offers implementation examples but provides no performance evidence.

Tags

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