Stock Screen Combining Five-Year ROE, Daily Gain, and Price Range

Summary

This stock-selection rule screens main-board shares for a daily high-to-low range of at least one price unit, return on equity above 15% in each of the prior five years, and a daily gain greater than 1%. It combines a price-movement condition with a sustained profitability criterion and a short-term upward move. The article supplies example formula and Python-style logic, though the code’s ROE threshold and universe condition may not fully match the written rule.

The author notes that historical profitability does not ensure future performance, and the screen omits broader market and macroeconomic influences. The article recommends considering additional technical, fundamental, and market context. It provides no backtest or return evidence. The main-board filter is described inconsistently in the examples, so users would need to verify the stock universe and data definitions before evaluating the screen.

Key ideas

• The rule combines a daily range threshold with ROE above 15% across five years.
• It also requires a daily share-price gain greater than 1% for main-board stocks.
• The screen mixes a historical fundamental condition with current price movement.
• Past ROE does not account for future changes or broader market conditions.
• The sample logic contains inconsistencies and is not supported by performance testing.

Tags

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