Screening for Moderate Gains, Low Moving-Average Dispersion, and Trend Alignment

Summary

This stock-selection proposal combines a positive but limited 10-day gain, a concentration measure below 20%, and at least five overlapping moving averages. It defines concentration as the difference between a short moving average and a longer one, divided by the longer average; the example uses five-day and 20-day averages. The 10-day gain is defined relative to the period’s lowest price. These conditions are intended to find shares with recent gains but limited separation between selected averages.

The article includes formula descriptions and a code sketch, but supplies no stock examples or backtest results. The code does not show how the moving averages or gain measures are populated, so the screen is not reproducible from the example alone. The document also warns that market, liquidity, and technology risks remain, and says parameters should be adjusted to market conditions and investment goals. It gives no execution rules or portfolio-level risk method.

Key ideas

• The proposed screen requires a positive 10-day gain below 35% and concentration below 20%.\nIt defines concentration using five-day and 20-day moving averages.\nIt also requires at least five moving averages to overlap.\nThe article gives no performance evidence, and its code sketch does not construct the required inputs.

Tags

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