A Chinese Stock Screen Combining Amplitude, Float Size, and Institutional Flow
Summary
The document presents a short term Chinese equity screen combining three conditions: price amplitude above one, free float no greater than 5.5 billion shares, and positive institutional net flow. The rationale is that larger price movement may signal near term trading potential, smaller float may bring higher risk and return potential, and positive institutional flow may indicate investor interest. Example formulas and Python snippets show how to calculate the filters, intersect qualifying stocks, and rank them by volume ratio.
The article acknowledges that this screen omits company fundamentals and may select richly valued or weak businesses. It also warns that institutional flow data can be delayed or uncertain, and that short term signals do not establish long term investment value. Suggested refinements include fundamental measures, additional technical indicators, and checking the flow measure's source and calculation. No backtest, benchmark comparison, or evidence of returns is provided.
Key ideas
- The screen requires amplitude above one, free float at or below 5.5 billion shares, and positive institutional net flow.
- The examples intersect the three filters and rank candidates by volume ratio.
- The author frames the rules as a short term screen rather than a measure of long term value.
- Fundamentals and additional technical measures are suggested as possible complements.
- Institutional flow data may be delayed or unreliable, and the document provides no performance test.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.