Screening Stocks by ROE, Price Range, and Relative Trading Volume

Summary

The document outlines a Chinese equity screen combining a daily high–low price range of at least 1, five consecutive years of return on equity above 15%, and a volume ratio between 1.5 and 6. Its rationale is to find consistently profitable companies trading with relatively elevated activity. It suggests adding turnover or capital-flow measures and other financial metrics, such as profit growth or gross margin, to broaden the assessment.

The article provides example indicator and Python logic, but the examples have inconsistencies: the displayed selector adds the separate yearly ROE checks, which does not clearly enforce that all five years pass, and the Python helper calls do not match the shown function signature. The price-range expression also includes an unspecified placeholder. No backtest, performance evidence, or detailed definitions of the indicators are provided. Treat the screen as a starting point for research, and verify the data fields, units, and conditions before use.

Key ideas

• The proposed screen combines a minimum high–low price range with strong historical ROE and elevated relative volume.
• The stated relative-volume band is 1.5 to 6.
• The article recommends adding trading-activity and financial measures to reduce reliance on a narrow set of criteria.
• The example code may not implement the stated five-year ROE requirement consistently.
• The screen is presented without backtest results or evidence of investment performance.

Tags

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