Chinese Equity Screening with RSI, Business Quality, and Moving Averages

Summary

This note describes a Chinese equity screen combining a 14-period RSI below 65, a qualitative filter for desirable enterprise characteristics, and a comparison of the 20-day and 120-day moving averages. The initial rule requires the shorter average to be above the longer one. The article then suggests a crossover-based version as a possible refinement, while its formula example still expresses the moving-average condition as the shorter average being higher than the longer average. It also includes a sample workflow for combining indicator and company data filters.

The document offers no performance figures or backtest results, so it does not establish that the screen is profitable or that the company-quality filter is consistently measurable. It notes that emphasizing moving averages may exclude some rapidly rising, higher-risk stocks and that judging enterprise quality can be subjective. The suggestions to incorporate financial data or market sentiment are proposals rather than tested improvements; readers would need to define those inputs and evaluate the complete rule empirically.

Key ideas

• The screen selects stocks with a 14-period RSI below 65 and a 20-day moving average above the 120-day average.
• A qualitative assessment of enterprise characteristics is included, but the article does not define a reproducible scoring method.
• The article proposes a short-over-long moving-average crossover as a refinement, though its formula example only checks which average is higher.
• The author identifies missed short-term rallies and subjective company classification as potential limitations.
• No return data or backtest evidence is provided.

Tags

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