Chinese Equities Strategy: Buy Moving-Average Pullbacks in an Uptrend

Summary

This Chinese equities strategy looks for stocks with a bullish moving-average stack: the five-day average exceeds the ten-day, then the twenty-day, forty-day, and one-hundred-twenty-day averages. It adds a pullback condition: the day’s low must fall below the ten-day average of closing prices. Qualifying stocks are bought at the next session’s open. A holding is sold at the following open when the five-day average falls below the forty-day average.

The construction notes describe selecting a stock universe and backtest dates, deriving buy and sell signals, removing rows with missing data, and simulating trades with fees and slippage. The portfolio can hold up to twenty stocks, with available cash allocated equally among qualifying purchases and orders rounded to board lots. The page gives implementation steps, not performance results or comparative evidence. It also marks the material as outdated for the platform’s current version, and does not establish how the rule behaves across markets, periods, or execution assumptions.

Key ideas

• The strategy requires five moving averages to be ordered from shortest to longest in a bullish stack.
• A stock qualifies for purchase when its daily low falls below its ten-day closing-price average.
• Entries occur at the next session’s open, and exits follow a short-term versus medium-term average crossover rule.
• The portfolio allows up to twenty holdings and allocates available cash equally among qualifying purchases.
• The page outlines a backtest process with fees and slippage but provides no performance results and says its platform instructions are outdated.

Tags

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