A Stock Screen Using Price Range, Ten-Day Return, and Main-Force Control
Summary
This document outlines a Chinese stock selection rule based on three conditions: price amplitude above 1, a ten-day gain greater than zero but below 35%, and a signal described as main-force control on the previous day. Its rationale is to find stocks that have shown some movement and positive recent returns without exceeding the stated gain ceiling, while also applying a capital-flow-related filter. The article includes a screening formula and a Python example intended to approximate the conditions.
The explanation treats amplitude as a measure of price movement and the control signal as an indicator of demand, but gives no empirical validation that either predicts future returns. It cautions that speculative activity or unexpected events can undermine the selection, and that inferred major-player flows do not guarantee subsequent performance. The article suggests adding technical and fundamental measures and risk controls. Its formula and sample code may use proxies that do not correspond exactly to the prose description, so implementation details would need checking before use.
Key ideas
- The proposed screen requires price amplitude above 1 and a positive ten-day return below 35%.
- It adds a previous-day signal interpreted as main-force control or capital-flow strength.
- The article supplies formula and Python examples but no tested performance results.
- Speculative activity, unexpected events, and unreliable flow signals are identified as risks.
- Additional technical, fundamental, and position-level risk controls are suggested.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.