Chinese Stock Screen Combining RSI, Profit Growth, and Moving Averages
Summary
This short-term Chinese equity screen combines a 14-period RSI below 65, parent-company net profit growth above 20% and up to 100%, and a moving-average condition. The article describes selecting stocks that meet these technical and fundamental filters, then reviewing them for investment. Its code examples also show filters for positive profits and exclude suspended or specially treated stocks, but the prose refers to at least five moving averages overlapping while the examples appear to apply a five-period moving average relative to price.
The author interprets a sub-65 RSI as room for a rebound and the moving-average condition as a sign of stability, while acknowledging that neither implication is assured. Risks include a short-term focus, missed opportunities caused by the moving-average screen, and possible manipulation. The post recommends adding measures such as revenue growth, margins, and valuation, and considering market conditions and risk controls. It supplies no backtest or performance evidence, and the mismatch between the stated rule and example code limits reproducibility.
Key ideas
- The proposed screen pairs RSI below 65 with a bounded range of year-over-year parent-company profit growth.
- A moving-average condition is intended to identify stocks with relatively stable price behavior.
- The article warns that short-term selection may neglect company fundamentals and longer-term prospects.
- The prose and code examples do not clearly implement the same moving-average rule.
- Additional fundamental measures and risk controls are suggested, but no performance evidence is presented.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.