Chinese Equity Screen Combining Turnover, Three Down Days, and KDJ Golden Cross

Summary

The document describes a Chinese equity selection rule combining turnover rate, recent price weakness, and a fresh KDJ bullish crossover. It selects stocks with turnover between 3% and 12%, three consecutive down days, and K crossing above D. The post includes example formula and Python implementations, although the implementations do not fully match the written rule: the formula uses moving averages to represent the declining sequence, while the Python example focuses on turnover and KDJ conditions without clearly implementing three down days.

The author frames the setup as a possible search for stocks in a low-level consolidation area, but provides no backtest, return figures, or supporting evidence for that interpretation. The rule also omits fundamentals and industry context, and the post itself notes that adding company, sector, and risk controls could improve selection. Results may depend on data definitions and implementation details.

Key ideas

• The screen combines a 3% to 12% turnover range with three declining days and a new KDJ bullish crossover.
• The post gives formula and Python examples, but they do not consistently implement every stated condition.
• No backtest or performance evidence is presented for the selection rule.
• The author notes that fundamentals, industry context, and risk controls are missing.

Tags

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