Stock Screening with Large Amplitude, Low KDJ, and Persistent ROE

Summary

This Chinese stock-screening example combines three conditions: price amplitude above 1, a KDJ value below 20, and return on equity above 15% for five consecutive years. It explains the selection as a blend of price movement, a technical indicator, and sustained profitability, and provides illustrative formulas and Python logic for calculating ROE from net profit and shareholder equity data.

The post gives no backtest, performance figures, or evidence that the screen reduces risk or identifies superior stocks. It flags the possibility of unreliable financial statements and weaker-than-expected company results, and suggests reviewing financial reports and setting position limits or stop losses. The indicator and financial-data definitions, including the measurement of amplitude and KDJ timing, are not fully specified, so the screening rules would need careful validation before use.

Key ideas

• The screen combines amplitude above 1, KDJ below 20, and five consecutive years of ROE above 15%.\nThe example calculates annual ROE as net profit divided by owners’ equity.\nThe post provides implementation references but does not report backtest results.\nFinancial reporting errors and deteriorating company performance are identified as risks.

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