A Chinese Stock Screen Using Turnover, Relative Gains, and Trend Setup

Summary

This document describes a short-term screening rule for main-board Chinese stocks. Candidates must have turnover between 3% and 12%, gain more than 1% on the day relative to a comparison benchmark or group, and meet a condition described as the start of a major upward move. The article presents both a charting-platform formula and a Python example, though their implementations of the return comparison and trend condition do not appear fully aligned. The formula also ranks candidates using its screening conditions and turnover.

The proposed rationale is to combine trading activity and price strength with a trend filter, while limiting the universe to main-board shares. The post warns that the screen may miss promising stocks, that short-term volatility can affect selections, and that its trend-start judgment can be inaccurate. It suggests adjusting thresholds or adding fundamental and technical filters. No performance results or controlled backtest evidence are provided, so the rules should be treated as a screening idea rather than a validated strategy.

Key ideas

• The screen targets main-board Chinese shares with turnover between 3% and 12% and a daily gain above 1% relative to a comparator.
• A separate condition is intended to identify the beginning of a strong upward move.
• The post offers implementations in a charting formula and Python, but their details are not fully consistent.
• Short-term price movement and errors in identifying trend starts can affect which stocks qualify.
• The article provides no performance evidence and suggests testing adjusted criteria or adding other filters.

Tags

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