A Short-Term Stock Screen Using Amplitude, Price, and Prior Limit-Down Signals

Summary

This document presents a short-term Chinese stock selection idea using three conditions: amplitude above 1, a closing price below 20, and a prior-day 9:15 matching price at the limit-down level. It frames the filters as a way to find stocks with price movement and a notable recent market event. Formula and Python examples attempt to operationalize the criteria, with the Python sketch also applying a rolling condition to the prior-day signal and selecting a small group of candidates.

The document provides no backtest, measured outcomes, or evidence that the limit-down signal predicts an opportunity. It warns that the approach focuses on short-term behavior, may encourage frequent trading, and can miss longer-term company prospects; a single price event may not reflect fundamentals. The implementation examples also appear difficult to reconcile with the stated rules: the formula’s amplitude and prior-event expressions are unclear, and the Python logic does not clearly identify a 9:15 matching-price limit-down event. Fundamental and financial filters are suggested, but not specified or evaluated.

Key ideas

• The proposed screen combines amplitude above 1, price below 20, and a prior-day 9:15 matching-price limit-down condition.
• The examples attempt to translate the filters into formula and Python logic, but the event definition is unclear.
• The document reports no historical performance or validation of the signal.
• It warns that a short-term event filter may lead to frequent trading and overlook longer-term business factors.
• It suggests adding financial and fundamental analysis without specifying tested criteria.

Tags

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