What It Tries To Do
value_trend looks for stocks that appear cheap, but only when price trend suggests the market has started to agree.
How It Decides
The strategy checks value measures such as earnings yield, book-to-price, sales-to-price, and dividend yield. It then uses a trend filter, usually price above the 200-day average.
Simple Example
A cheap stock below its long-term trend may be cheap for a reason. A cheap stock that has moved back above its 200-day average is more interesting to this strategy.
When To Use It
Use it when studying value with a price-confirmation filter. Monthly rebalance is a reasonable default.
What Can Go Wrong
Cheap stocks can stay cheap. The trend filter helps avoid some value traps but does not remove the risk.
How To Read Results
Look at long windows. Value strategies can underperform for years before recovering, so short tests are often misleading.