A Chinese Stock Screen for Large Swings and Recent 10% Gains

Summary

This stock screen combines a large daily high-to-low range with at least one daily gain of 10% or more during the previous 25 trading days, then limits candidates to Chinese stocks whose codes begin with 60. The article presents equivalent screening logic and illustrative indicator and Python implementations, and ranks selected names by trading volume. Its range condition is also described using a comparison with 20-period average true range, so the operational meaning of the stated amplitude threshold is not entirely consistent across the text.

The accompanying analysis warns that filtering by stock-code prefix can create selection bias and overfitting, while emphasizing short-term price action at the expense of fundamentals and longer-term results. It suggests adding broader screening factors and combining indicators, but supplies no backtest, portfolio construction, or evidence that the screen predicts returns. The screen is a candidate-selection rule, not a complete trading strategy.

Key ideas

• The screen looks for a large daily range and a 10% or greater daily gain within the recent 25 trading days.
• It restricts candidates to Chinese stock codes beginning with 60.
• The examples rank selected stocks by trading volume.
• The article cautions that code-based selection may overfit and that short-term signals can neglect fundamentals.
• No backtest or evidence of profitability is provided.

Tags

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