A Simple Stock Screen Using Price, Range, and Recent Return

Summary

This article describes a Chinese stock selection screen using a daily high-low range threshold, a closing price of 18.5 yuan, and a positive return below 35% over ten days. The stated intent is to find stocks with some recent gains, moderate price, and noticeable movement. It also suggests sorting candidates by trading value. The article presents formula and Python examples, but the code has apparent inconsistencies: parts of the logic refer to the prior close rather than clearly calculating a ten-day return, and the sample data handling and sorting fields are not fully aligned.

The author notes that the screen omits fundamentals, longer-term direction, and market context, and proposes adding fundamental, industry, market-trend, relative-strength, and liquidity considerations, along with stop-loss and profit-taking rules. No backtest, performance evidence, or validation is supplied, so the thresholds should be treated as illustrative screening choices rather than an established strategy.

Key ideas

• The screen combines a high-low range filter, a specified closing price, and a bounded positive recent return.
• Candidates are suggested to be ranked by trading value.
• The article proposes adding fundamental, industry, market trend, and liquidity checks.
• It acknowledges that the simple technical screen omits broader context and risk controls.
• The examples do not provide backtest results, and their implementation details appear inconsistent.

Tags

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