Selecting Equities with Positive MACD and Sustained High ROE

Summary

This stock screen combines a positive MACD reading with a company-category filter and a history of high return on equity. The article describes the intended idea as finding companies with favorable fundamentals and technical trends. Its stated ROE threshold is above 15% for five consecutive years, though the headline gives a different threshold. The examples refer to Chinese equities and a healthcare-related category filter.

The article explains that a positive MACD is treated as evidence of an upward trend, while sustained ROE is used as a measure of profitability. It includes sample indicator and Python snippets, but does not present a backtest or performance evidence. It warns that relying on a narrow set of indicators may omit important business or market information and may overemphasize historical performance. Suggested refinements include adding financial and technical measures and adjusting the ROE criterion to reflect current company conditions.

Key ideas

• The screen combines positive MACD, a company-category condition, and sustained high ROE.
• The article describes its ROE requirement as above 15% for five consecutive years, despite a conflicting headline.
• The strategy is intended to pair a trend signal with a measure of business profitability.
• The article gives implementation examples but no evidence of tested returns.
• It cautions that the narrow screen may overlook current conditions and other relevant factors.

Tags

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