Stock Screening with Positive MACD, a Price Cap, and Company Quality

Summary

The document proposes screening stocks for a positive MACD condition, a closing price below 12 yuan, and a company-quality criterion. It describes running the screen before 10 a.m. on each trading day. The intended combination is a momentum signal, a price threshold, and a fundamental quality filter; however, the post does not define the company-quality measure beyond noting that it must be adapted to the available data.

It includes illustrative indicator and Python references, while warning that data sources and fields may need adjustment. The post also notes that a narrow quality filter can miss other fundamentals, market conditions can weaken the approach, and risk controls such as profit-taking and stop-loss rules may be needed. No backtest, return statistics, or validation is presented, so the criteria should be understood as a screening idea rather than demonstrated evidence of an effective trading strategy.

Key ideas

• The proposed screen combines positive MACD, a closing price below 12 yuan, and a company-quality condition.
• The document suggests evaluating the screen before the trading day’s later activity.
• The company-quality field is not standardized and requires a user-defined data source or measure.
• The author identifies market changes and incomplete fundamental analysis as potential limitations.
• The post offers no backtest or performance evidence for the screen.

Tags

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