Stock Screening with Multiple Moving-Average Crossovers and a Long-Term Trend Filter

Summary

This stock-screening proposal combines daily amplitude above a threshold, three moving-average crossovers occurring together, and a 20-day moving average above a 120-day average. The crossover sequence is presented as a short-term trend signal, while the longer-versus-shorter average condition is intended to select stocks in an established upward trend. The document includes example formulas and sample code, though the code also introduces a market-cap condition and does not clearly establish that its calculations implement simultaneous crossover events correctly.

The author cautions that a screen built from a small set of technical variables can overfit or select unsuitable companies, since price indicators do not capture financial health. It suggests adding company financial measures and industry prospects. No historical test, benchmark, transaction cost, or performance evidence is provided, so the screen should be treated as an illustrative rule set rather than a demonstrated strategy.

Key ideas

• The proposed screen requires elevated amplitude, three moving-average crossovers, and a longer-term trend filter.
• The 20-day average above the 120-day average is used as a broad trend condition.
• The sample code includes an additional market-cap filter not central to the stated rule.
• The document warns of overfitting and missing fundamental information.
• No backtest or performance evidence supports the screening rules.

Tags

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