A Turnover and KDJ Screen for Rising Mainboard Stocks

Summary

The document describes a daily stock selection rule for China’s main board. It selects stocks with turnover between 3% and 12%, a rising KDJ K value, and a daily price gain greater than 1%. It also provides example formulas and a Python implementation, though the implementation uses average turnover across the available data and checks the latest two observations for the other conditions.

The rationale is to combine trading activity, a positive technical signal, and recent price strength. The source cautions that this screen ignores company fundamentals and industry differences, and that stocks already up more than 1% may be temporarily overvalued or vulnerable to chasing. It suggests adding valuation and profitability measures, reviewing reports and news, and considering broader market conditions. No backtest, benchmark comparison, or risk-adjusted performance evidence is provided, so the selection rule should be treated as a screening idea rather than a validated strategy.

Key ideas

• The screen requires turnover between 3% and 12%, an increasing KDJ K value, and a daily gain above 1%.
• It restricts candidates to main-board stocks.
• The source suggests combining technical conditions with fundamental and event information.
• The screen has no reported backtest or performance evidence.
• A recent price rise can expose the selection rule to chasing and short-term overvaluation.

Tags

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