Stock Screening with High Amplitude, Recent Price Strength, and ROE

Summary

This proposed equity screen combines amplitude above one, at least one daily gain of 10% or more within the prior 25 trading days, and return on equity above 15% for five consecutive years. The article presents these as a blend of volatility, recent price strength, and business profitability. It discusses the intent to filter for companies with both notable price moves and sustained reported returns on equity.

The post offers formula and Python references, but does not provide a backtest or performance evidence. Its examples also appear to diverge from the stated lookback rule: the formula tests a single day’s return, while the prose asks whether any qualifying move occurred within 25 days. The Python snippets include additional calculations that do not clearly implement the full screen. The author notes risks from relying too heavily on fundamentals, possible reporting quality issues, and neglect of market or macro conditions. These conditions are therefore best understood as a screening proposal, not a validated source of returns.

Key ideas

• The stated screen requires amplitude above one and at least one daily gain of 10% or more in the prior 25 trading days.
• It also requires return on equity above 15% for five consecutive years.
• The proposed combination seeks stocks with recent price strength and sustained reported profitability.
• The code examples do not clearly implement the full 25-day condition, and no performance evidence is given.
• The article flags market, macroeconomic, and financial reporting risks.

Tags

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