Screening for High Dividends, Seven-Day Weakness, and Price Amplitude

Summary

This post describes a Chinese stock screen combining daily amplitude above 1%, a dividend ratio above 25% for 2019, and seven consecutive sessions classified as bearish. The author presents the dividend filter as a way to find higher-payout companies, while the streak condition identifies stocks with sustained recent weakness; amplitude selects stocks with a larger daily range. Formula and Python examples illustrate how the conditions might be combined, though the streak implementation uses closes below a moving average rather than simply counting down days.

The post acknowledges that a losing streak does not by itself make a stock attractive and that price, dividend, and technical filters omit important company fundamentals and macroeconomic influences. It suggests adding valuation and economic indicators, along with measures across different time horizons. No backtest, selected-stock examples, or evidence of returns is supplied. The rule is therefore a basic screening recipe, not evidence that the combination reliably finds undervalued or recovering stocks.

Key ideas

• The screen combines daily amplitude above 1%, a 2019 dividend ratio above 25%, and seven sessions of bearish conditions.
• The example code defines weakness using closes below a moving average over a rolling window.
• A sequence of losses alone does not establish that a stock is a good investment.
• The author recommends adding valuation, macroeconomic, and multi-horizon trend measures.
• The post provides no test results showing whether the filter predicts returns.

Tags

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