Chinese Stock Screen Combining Price Range, ROE, and KDJ

Summary

This Chinese-language post describes an equity screening rule that combines a daily high-low range threshold, five consecutive years of return on equity above 15%, and a KDJ indicator condition below 20. The intended combination is a technical filter alongside a profitability screen. The post suggests broadening the analysis with indicators such as MACD or RSI, additional fundamentals such as valuation or dividend yield, and explicit stop-loss or take-profit controls.

The article provides example formula and Python snippets, but the examples do not align perfectly with the stated rule: one substitutes a moving-average condition for KDJ, while other fields and market references appear placeholder-like or inconsistent. It reports no backtest, selection universe, transaction costs, or realized returns, so the screen’s effectiveness cannot be assessed from the post. The discussion itself flags subjectivity in technical indicators and the limits of relying on a small number of factors.

Key ideas

• The proposed screen combines a price-range condition, five years of ROE above 15%, and a KDJ reading below 20.
• The strategy mixes a technical filter with a multi-year profitability requirement.
• The author suggests adding technical and fundamental measures to broaden the selection criteria.
• The code examples do not consistently implement the rule described in the text.
• No performance results or transaction cost analysis are provided.

Tags

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