Stock Screening with Persistent ROE and Weekly MACD

Summary

This post describes an equity screening approach that combines a minimum daily high-to-low range, consistently high return on equity over five years, and weekly MACD above its zero line. The rationale is to pair a price movement filter with a profitability screen and a trend confirmation signal. It includes example formulas and a Python-oriented outline, though the implementation details are not fully consistent about how ROE history is grouped or how weekly MACD is calculated.

The author identifies several limitations: MACD can lag turning points, the screen omits valuation, and the ROE requirement may leave few candidates. Suggested additions include valuation, volume, safety margin, and other technical indicators. No backtest results, performance data, or evidence of profitability are provided, and the post does not specify portfolio construction, rebalancing, transaction costs, or how the screening conditions should be evaluated across time.

Key ideas

• The screen requires a daily range threshold, five years of strong ROE, and weekly MACD above zero.
• The criteria combine price movement, company profitability, and a trend signal.
• The author notes that MACD may lag and that valuation is not covered.
• The post provides example implementation sketches but no performance evidence.

Tags

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