A-Share Screen Using RSI, Beverage and Alcohol Industry, and Price

Summary

This note proposes a Chinese equity screen that combines a 14-period RSI below a stated ceiling, membership in the beverage and alcohol import-export industry, and a share price below a stated limit. It frames the conditions as a mix of technical, industry, and price filters, and includes formula and Python examples. The Python sketch also adds a market-capitalization floor and excludes special-treatment stocks, although those additions are not part of the stated core rule.

The article provides no backtest, comparison, or evidence that this combination identifies attractive returns. It cautions that RSI can fluctuate, industry prospects are uncertain, and using share price as a valuation proxy can exclude opportunities without measuring relative value. It suggests adding indicators and company growth data, or using valuation ratios, while adjusting rules to market conditions. The screen should be read as a preliminary filter rather than a tested investment strategy.

Key ideas

• The core screen requires low RSI, membership in a specified beverage and alcohol industry, and a share price below a threshold.
• The code example adds market-capitalization and special-treatment filters beyond the stated core conditions.
• The note gives no performance evidence or backtest for the screening rule.
• RSI variation, uncertain industry growth, and reliance on nominal share price are identified as limitations.
• The article suggests supplementing the screen with other technical and fundamental measures, including relative valuation.

Tags

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