Screening Stocks with Positive MACD, Business Quality, and Bounded Returns

Summary

This Chinese A-share screen selects stocks with MACD above zero, a qualitative business-character assessment, and a daily price change within a specified range. The article frames the rule as combining a technical momentum condition with a basic company-quality filter, while the return band is intended to avoid stocks with especially large daily moves. Its formula reference adds filters for circulation value and non-ST status; the example code likewise applies market and share-circulation criteria before checking price change and MACD.

The article presents no backtest results or evidence that the filters improve returns. It warns that a small set of criteria can oversimplify stock selection and overlook market shifts, company-specific problems, and other indicators. “Good business quality” is not precisely defined, and the code’s use of recent price data does not fully resolve that ambiguity. The suggested additions, such as valuation and profitability measures, are ideas for further refinement rather than tested improvements.

Key ideas

• The main screen requires MACD above zero and a daily return inside a stated band.
• A qualitative company-character condition is intended to add a fundamental element.
• The formula reference also includes circulation-value and non-ST filters.
• The article cautions that the business-quality condition is vague and the rule omits other factors.
• No empirical validation or performance results are supplied.

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