A Chinese Stock Screen Combining Amplitude, Shape, and Control Metrics

Summary

The document proposes a Chinese equity screen combining amplitude above 1, a rounded price pattern, and a “today control” reading above 21. Its explanation associates higher amplitude with short-term trading potential, the rounded shape with relatively gradual movement, and the control measure with an upward trend. The referenced formula adds technical conditions involving recent price ranges, closing price relative to moving averages, and distance above the 20- and 60-period averages.

The post cautions that the control indicator is subjective and that technical-only selection may omit fundamentals and broader market conditions. It recommends incorporating additional inputs and optimizing against historical backtests, with machine learning mentioned as a possible extension. No backtest results, universe definition, execution assumptions, or validation procedure are reported, so the suggested screen should be treated as a hypothesis rather than an evidenced strategy.

Key ideas

• The proposed screen combines amplitude, a rounded price pattern, and a control reading threshold.
• The example formula also checks recent price ranges and closing-price relationships to moving averages.
• The post acknowledges that the control measure is subjective and technical signals omit fundamental context.
• It suggests adding other indicators and evaluating the screen with historical backtests.
• No performance evidence or testing methodology is provided.

Tags

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