A Stock Screen for High Amplitude, Main-Fund Control, and Price Recovery

Summary

The document describes a Chinese equity screening rule combining three conditions: daily amplitude above a threshold, evidence of main-fund control on the previous day, and a close above the previous day’s low. It frames the combination as a way to find volatile stocks with signs of institutional participation and a short-term price condition suggesting some recovery from the prior low.

The article gives a reference implementation conceptually applying these filters, but provides no performance results or backtest evidence. Its discussion notes that the screen does not account adequately for longer-term trends, company fundamentals, or broader market direction. It suggests adding such factors or using the rule alongside other strategies. The “main-fund control” measure is not clearly defined in the prose, and the sample logic does not establish how robustly it can be measured, so the screen should be treated as a basic candidate filter rather than a validated trading strategy.

Key ideas

• The screen selects stocks whose intraday amplitude exceeds a threshold.
• It also requires a prior-day signal described as main-fund control.
• The latest close must be above the previous session’s low.
• The article provides no evidence of returns or risk-adjusted performance.
• Long-term trend, fundamentals, and market direction are suggested as additional filters.

Tags

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