Screening Stocks by Turnover, Reversal, and Five-Year ROE

Summary

The document describes an equity screen that combines turnover between 3% and 12%, a reversal-style price pattern, and return on equity above 15% for five consecutive years. Its example formula also requires the KDJ indicator’s K value to exceed its D value, and a sample Python workflow retrieves daily prices and financial indicators before filtering candidates.

The rationale is to identify consistently profitable companies with moderate trading activity and a rebound signal. The article offers no performance results or backtest evidence. It cautions that the screen leaves out market and industry conditions, may favor cyclical stocks, can miss future growth companies, and may expose users to sharp price declines. It suggests adding valuation measures and other technical indicators, but gives no tested evidence that these changes improve results. The sample implementation also contains limited detail about data alignment and how the stated five-year ROE condition is verified, so the recipe is not fully specified for reliable evaluation.

Key ideas

• The screen requires turnover between 3% and 12%, a reversal pattern, and ROE above 15% across five years.
• The example formula adds a KDJ condition in which K exceeds D.
• The article provides implementation sketches but no measured strategy performance.
• Market regime, industry changes, and volatile price moves are identified as risks.
• Valuation and technical filters are proposed as possible additions without supporting results.

Tags

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