Let me start off by saying I haven't implemented this yet. I have done some paper trading on it and it has thus far shown to provide consistent yet moderate to low gains.
1. I approach a stock as if I am a pure dividend trader. I screen for stocks whose sma20 > sma50 > sma 200. I visually inspect the chart going back even farther taking special note to look at 2008 and 2020 to establish a stable consistent growth trend.
2. I filter out any stock that isn't >4% dividend yield and must be a buy or strong buy rating. Must have a >1 billion market cap.
3. I look at the stocks valuation from analyst opinions and make sure its below the average valuation by several percentage points.
4. I look at the PE yoy change, eps growth, revenue growth, dividend growth yoy, dividend growth 5 year, and dividend payout ratio. I hope from this I can determine if a company is profitable, stable, and has a dividend focus. I once again take special note to look at dividends 2008 and 2020.
5. Next I look for a current price below the ema20 that just had a premarket gap up of at least 1%. I validated that gap by making sure it has some volume to it as well.
6. Lastly, I look to make sure the stock has >2% average daily range.
I enter at 10% account value at the opening bell when the price comes down near the 5min ema 20. I set a TP around the yearly dividend yield. **I do not set any stop loss.** If the price drops or even crashes I become a pure dividend investor. If the upward trend continues I take profit as if I am a swing trader.
Thoughts? Roast away.