Chinese Equity Screen Using RSI, Earnings Growth, and Recent Limit-Up Activity

Summary

The document proposes screening Chinese stocks for an RSI below 65, year-over-year net profit growth above 20% and up to 100%, and more than two limit-up days over a recent 10-day period. Its rationale combines a technical condition, a profitability-growth measure, and recent market attention. The supplied examples also include moving-average, liquidity, listing, and market-capitalization filters, though these additions are not fully consistent across the description and code.

The note warns that relying on a small set of indicators and one financial growth measure can miss other price, trend, and company characteristics. It suggests adding indicators such as MACD or KD, valuation and return measures, and comparisons across firms and industries. The document offers formulas and sample code, but no backtest or evidence that the screen predicts returns. Some example calculations and conditions differ from the stated selection rule, so they would need review before use.

Key ideas

• The stated screen combines an RSI ceiling, a bounded range of net profit growth, and repeated recent limit-up moves.
• The examples add moving-average and stock-universe filters beyond the core rule.
• The document recommends broader technical, fundamental, and industry comparisons to address the screen’s narrow inputs.
• No performance evidence is provided, and parts of the sample code do not align cleanly with the stated rules.

Tags

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