Stock Screening with Weekly MACD and Sustained High ROE

Summary

This stock-selection idea combines daily amplitude above 1, a positive weekly MACD histogram, and return on equity above 15% for five consecutive years. It pairs a price-activity condition and a technical momentum signal with a measure of sustained profitability. The post also includes example formulas and code, though the formula refers to ROA in places while the stated screen and Python sketch refer to ROE, an inconsistency that should be resolved before implementation.

The author cautions that high ROE alone does not establish company quality or guarantee persistence, and that valuation, financing costs, pledges, and controlling-shareholder risks may matter. Additional fundamental or text-based filters, risk controls, and diversification are suggested. The document reports no backtest or return evidence, and does not specify portfolio weights, valuation criteria, or concrete exit rules.

Key ideas

• The screen combines daily amplitude, a positive weekly MACD histogram, and a multi-year high-ROE requirement.
• The post pairs a technical signal with a profitability measure to identify candidate stocks.
• Some example formula fields use ROA where the stated strategy calls for ROE.
• The author notes that ROE can be incomplete or unsustainable and omits valuation and governance risks.
• No performance evidence, position sizing, or detailed exit rules are provided.

Tags

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