Chinese Equity Screen Using Rising Lows and Mid-Cap Range

Summary

This Chinese-language post describes an equity selection rule that combines price behavior with a circulating market-capitalization filter. It seeks stocks with amplitude above a stated threshold, rising bottoms, and market capitalization in a stated middle range. The final rule also excludes specially treated stocks and proposes selling when the price or candlestick falls below the Bollinger middle band. Indicator examples add momentum and Bollinger conditions to the screen.

The post provides sample formulas for a Chinese trading platform and Python-style logic, but it reports no backtest results or evidence that the screen is profitable. Its explanation flags the risk of missing strong companies when market capitalization is used as a filter, and notes that capitalization can change quickly. The examples appear to use differing definitions and calculations for some conditions, so implementation details should be checked before relying on them. It suggests adding valuation factors or machine learning, without demonstrating those additions.

Key ideas

• The screen combines amplitude, rising lows, and a circulating market-capitalization band to select stocks.
• The proposed final rules exclude specially treated shares and use a Bollinger middle-band break as an exit condition.
• Platform formulas and Python-style logic are provided as implementation references, but no performance evidence is reported.
• Market capitalization alone may exclude attractive companies and can change as prices and share data move.
• The post suggests adding valuation measures or machine learning, but does not test those extensions.

Tags

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