Screening Stocks with MACD, Positive P/E, and a Market-Cap Floor

Summary

This Chinese A-share screening idea selects stocks before each trading day using three conditions: MACD above zero, trailing P/E above zero, and market capitalization of at least 200 million. The document presents the MACD condition as a trend filter, positive P/E as an earnings-related screen, and the size threshold as a way to exclude very small companies. It also shows indicator formulas and example screening logic, with ranking by trading activity suggested separately.

The article gives no backtest results or evidence that the conditions predict returns. It cautions that passing the screen does not establish sound fundamentals and that equity prices can fall sharply. Suggested refinements include adding other technical indicators and company measures such as revenue growth or gross margin, then reviewing the screen as market conditions change. The examples are implementation references, and their data fields and calculations would need checking before use.

Key ideas

• The screen requires MACD above zero, positive trailing P/E, and market capitalization of at least 200 million.
• It proposes running the selection before each trading day.
• Trading activity is offered as a possible ranking measure after filtering.
• Passing the screen does not establish strong fundamentals or protect against market losses.
• The author suggests adding indicators and fundamental measures, then reassessing the rules over time.

Tags

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