Screening Stocks for Strong ROE and Seven Consecutive Down Days

Summary

This stock screen combines daily price range, sustained profitability, and recent weakness. It selects shares with an intraday high-low range of at least one unit, return on equity above 15% for each of five years, and seven consecutive declining sessions. The final version also includes a market capitalization floor of one billion yuan. The intended idea is to find financially strong companies whose prices have recently weakened.

The document describes the rules and provides example implementations for a Chinese stock screening platform and Python. It offers no backtest, performance data, or evidence that the screen predicts a rebound. The author notes risks from data errors, relying on a short losing streak, and omitting broader market or company factors. The sample Python conditions also do not clearly match the stated five-year ROE and seven-session decline rules, so implementation details need verification before use.

Key ideas

• The screen requires ROE above 15% in each of five years.
• It combines that profitability filter with seven consecutive declining sessions.
• The final stated rules add an intraday range threshold and a market capitalization minimum.
• No performance evidence is supplied, and the examples may not implement every stated condition accurately.

Tags

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