A-Share Screen Using Turnover, KDJ Crossovers, and Low Concentration

Summary

The document describes a Chinese equity screening rule that selects stocks with turnover between 3% and 12%, a newly formed KDJ golden cross, and a concentration measure below 20%. Its explanation presents turnover as a liquidity filter, the KDJ crossover as a signal of upward momentum, and lower concentration as a way to avoid excessive exposure to concentrated holdings. The accompanying formula and Python example illustrate how the conditions might be applied to stock data.

The explanation cautions that the screen leaves out company characteristics, industry effects, and financial measures, and suggests adding factors such as profitability or growth for broader evaluation. The concentration wording in the title is malformed, and the code uses a turnover quantile and a comparison between KDJ values that may not precisely represent the stated conditions. No backtest, portfolio construction rules, or performance evidence is provided, so the selection logic is an unvalidated starting point.

Key ideas

• The stated screen combines a 3% to 12% turnover range, a recent KDJ golden cross, and concentration below 20%.
• The document interprets turnover as a liquidity filter and the KDJ crossover as an upward-trend signal.
• The screen omits company, industry, and financial information that could materially affect stock outcomes.
• The title and code leave some condition definitions unclear, and no performance results are reported.

Tags

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