A Chinese Equity Screen Combining RSI, Large-Order Flow, and Market Cap

Summary

The document describes a Chinese stock selection screen that combines a 14-period RSI below 65, the product of percentage price change and an oversized-order net inflow measure above 1, and a circulating market capitalization between 5 billion and 10 billion yuan. It frames the combination as a way to find stocks with potential for rebounds by blending a technical condition, a money-flow measure, and a company-size range. A Python example also applies turnover and positive price-to-book and price-to-earnings filters, then returns up to 50 matches.

The article offers a rationale for each filter but presents no historical test, performance results, or evidence that the screen predicts rebounds. It identifies risks from imperfect indicators and data, subjective market-cap thresholds, broad market conditions, and company fundamentals. Suggested refinements include adding other technical indicators, valuation measures, and financial-statement criteria. The stated filters and example code are not fully aligned, so the screen would need careful specification before evaluation.

Key ideas

• The screen selects stocks with RSI below 65 and a specified price-change by large-order-flow product.
• It limits candidates to a circulating market capitalization between 5 billion and 10 billion yuan.
• The example code adds turnover and positive valuation filters and caps the output at 50 stocks.
• The article gives a rationale but no backtest or measured evidence of rebound performance.
• It notes that data quality, market conditions, and company fundamentals can undermine the selection logic.

Tags

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