Educational analytics only — not investment advice or trading signals. Read disclaimer.
Short-Term Growth Signal

2-Week 2% Growth Strategy

Simple momentum screen based on consistent short-term growth

This straightforward strategy identifies stocks showing consistent 2% growth over short rolling windows. It's transparent, easy to understand, and quick to backtest with different parameters.

How the Signal Works

1

Calculate Rolling Growth

Compute 5-day rolling percent change for each stock in your universe

2

Check Consistency Threshold

Verify if the stock maintains 2% or higher growth for 2 consecutive weeks (10 trading sessions)

3

Form Daily Screen

Eligible stocks become entry candidates, sized according to capital allocation rules

4

Manage Exits

Use profit targets, stop losses, and maximum holding periods to control risk and lock in gains

Strengths & Limitations

Strengths

  • Transparent and easy to understand
  • Parameter-light approach
  • Aligned with momentum principles
  • Fast to compute and backtest
  • Adaptable to different time windows

Limitations

  • Sensitive to short-term price noise
  • May chase stocks late in their run
  • Prone to whipsaws in range-bound markets
  • Requires careful position sizing
  • Higher turnover can increase taxes

Important Considerations

Universe Selection

Results vary significantly by stock universe. Test on your specific watchlist or sector focus.

Market Regime

Performance differs in trending vs. choppy markets. Compare against NIFTY TRI for context.

Tax Impact

Short holding periods often trigger STCG. Model realistic tax assumptions in your backtests.

Parameter Tuning

Experiment with different growth thresholds and time windows to find what works for your goals.

Test This Strategy Now

Run backtests with custom parameters, time periods, and tax assumptions to see if this approach fits your investment style

Try This Screen in StratLab

Frequently Asked Questions

No single strategy works universally. Results differ based on stock universe (large-cap vs. small-cap), market regime (trending vs. range-bound), and time period. Always test on your specific watchlist and compare results against NIFTY TRI as a baseline to understand relative performance.

Short holding periods typically result in short-term capital gains (STCG), which are taxed at higher rates than long-term gains. StratLab allows you to configure STCG/LTCG tax assumptions so you can see post-tax outcomes. This is crucial for realistic performance expectations.

Absolutely! StratLab lets you customize both the growth threshold (e.g., 1.5%, 3%) and the consistency window (e.g., 1 week, 3 weeks). Testing different combinations helps you understand sensitivity to parameters and find settings that match your risk tolerance.

This active strategy involves higher turnover and transaction costs compared to buy-and-hold. It may outperform during strong trending periods but can underperform in choppy markets or during sharp reversals. Use the comparison features in StratLab to see side-by-side results.