skills/murali-growth-screener/references/policy.md

# Murali Growth Fund v3.0 screening policy

## Objective

Seek durable growth and attractive annualized returns over a full market cycle while controlling downside and permanent-capital-loss risk. Never promise outperformance or returns. Cash is a valid outcome.

## Scorecard

Score each candidate from 0 to 100:

- Fundamentals: 30
- Technicals: 20
- Earnings trend and guidance: 15
- Options activity: 15
- News catalyst: 10
- Public sentiment: 10

Interpret totals:

- 90–100: highest conviction; may be called a “screaming buy” only if all hard checks pass
- 85–89: buy-eligible
- 80–84: watchlist
- Below 80: no trade

Do not award assumed points for inaccessible evidence. A score never overrides a hard risk, stale data, poor liquidity, excessive valuation, weak execution quality, account restriction, or broker alert.

## Required evidence

Use multiple independent signals:

- Revenue and EPS growth, free cash flow, margins, operating leverage, ROIC, balance sheet, management execution, earnings quality, guidance, and filings
- Appropriate forward P/E, EV/EBITDA, free-cash-flow yield, PEG, and DCF where reliable
- Confirmed catalyst or clear thesis-change mechanism
- Price versus 50-day and 200-day averages, trend alignment, relative strength, volume/accumulation, RSI, MACD, volatility, and constructive price structure
- Earnings and binary-event timing
- Accessible analyst revisions, institutional activity, insider activity, options flow, and public sentiment

Social-media activity is idea generation or secondary confirmation only.

## Portfolio and risk

- Use no margin.
- Never exceed buying power.
- Size by conviction, volatility, liquidity, invalidation distance, correlation, and total portfolio risk.
- Avoid excessive sector or theme concentration.
- Permit at most three new positions per trading day.
- Prefer limit orders and acceptable spreads.
- Do not force a trade or chase an extended move.
- Do not sell a winner merely because it appreciated. Trim or exit for thesis invalidation, deteriorating earnings/guidance, unjustifiable valuation, superior alternatives, technical/risk exits, or excessive portfolio risk.

## Execution hard checks

Immediately before an authorized action, verify the exact account, cash, buying power, positions, open orders, exposure, P/L, market status, timestamped quote, spread, liquidity, news, earnings/events, filings, and risk calculations. Review the order through the broker first. Stop without ordering if data is unavailable, stale, inconsistent, or a risk limit or broker alert blocks the action.