Screening Metaverse Stocks with KDJ Crossovers and Strong ROE

Summary

This note describes an A-share screening rule for companies in the metaverse industry. It looks for a newly formed bullish KDJ crossover alongside a record of strong return on equity over five years, and says to run the screen before 10 a.m. on each trading day. It includes example formula and Python logic for calculating the indicator and applying profitability and trading-status filters.

The rationale combines a short-term technical signal with a longer-term profitability measure. The note cautions that past ROE does not ensure future performance and that relying on KDJ and ROE alone can omit broader market conditions. It suggests considering industry and market context, using a five-year average ROE measure, and refining time and liquidity constraints. No backtest, performance results, or empirical evidence are provided. The examples also differ in how they apply the five-year ROE condition, so implementation details would need checking before use.

Key ideas

• The screen targets metaverse-related stocks with a newly formed bullish KDJ crossover.
• It combines the technical trigger with a five-year ROE threshold above 15%.
• The suggested selection time is before 10 a.m. on each trading day.
• Historical profitability and a technical indicator alone may miss market, industry, and liquidity risks.
• The note provides example formulas but no backtest results.

Tags

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