A Chinese Stock Screen Combining Volatility, Profitability, and Seven Down Days

Summary

This Chinese-language post proposes screening mainland stocks for daily price amplitude above 1%, market capitalization below 10 billion yuan, positive net profit, and a seven-session decline condition. The stated rationale is to find relatively volatile, smaller profitable companies whose recent losses might leave room for a rebound. It also mentions limiting the universe to main-board listings. Formula and Python examples are provided as references for expressing parts of the screen.

The post treats the seven-day condition as a supporting signal and recommends considering longer-term trends, company fundamentals, industry context, and risk controls such as stop-loss and take-profit levels. It suggests adding other filters, including dividend yield. No backtest, return series, or evidence of predictive value is reported. The sample formulas and code should be interpreted cautiously: their conditions do not consistently match the prose description, and the article itself warns that a consecutive-decline signal can produce false positives and overlook broader market or fundamental factors.

Key ideas

• The proposed screen combines price amplitude, a market-cap ceiling, positive profitability, and a recent seven-session low condition.
• The author frames the decline condition as a possible rebound signal, not a complete basis for a trade.
• The post recommends adding fundamental, industry, and longer-term context to the selection process.
• It suggests stop-loss and take-profit rules as possible risk controls.
• No performance evidence is supplied, and the sample implementations may not fully match the written criteria.

Tags

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