A Chinese Stock Screen Using RSI, Industry Concentration, and the 30-Day Average

Summary

This Chinese stock-screening proposal combines three conditions: RSI below 65, an industry concentration measure either above 70% or below 20%, and a rising 30-day moving average. The rising average is intended to favor stocks with an upward price trend, while the RSI ceiling and concentration filter further narrow the candidates. The concentration variable is not clearly defined in the text, which limits interpretation of the two alternative thresholds.

The article offers sample formulas and Python-like implementation guidance, but it does not report a backtest, returns, or risk-adjusted results. It cautions that the screen relies on historical data, uses a small set of signals, and omits fundamental considerations. Suggested additions include other technical indicators, valuation and earnings information, and a turnover filter to reduce exposure to illiquid stocks. These are screening ideas rather than evidence that the rules predict future performance; implementation details and data definitions would need checking before use.

Key ideas

• The screen requires RSI below 65 and a rising 30-day moving average.
• It accepts either high or low values for an industry concentration measure, though the measure is not defined clearly.
• The article suggests adding technical signals, fundamental measures, and turnover filters.
• The proposal includes no reported backtest or performance evidence.
• Historical dependence, omitted factors, and liquidity are cited as limitations.

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