Chinese Stock Screen Combining RSI, Revenue Growth, and a Rising 30-Day Average

Summary

This Chinese A-share screening proposal combines a technical condition with revenue growth and a short-term trend filter. It selects stocks with RSI below 65, revenue in 2021 more than 1.1 times revenue in 2018, and a rising 30-day moving average. The article also presents formula and Python examples; the Python version adds exclusions for special-treatment stocks and high price-to-earnings ratios, although its data handling does not cleanly match the stated year-based revenue comparison.

The document offers no backtest, portfolio results, or evidence that these conditions generate excess returns. It identifies key limitations: revenue alone is a narrow fundamental measure, the screen omits industry context, and single indicators may misclassify stocks. It suggests adding valuation and other financial measures, considering sector conditions, and strengthening risk controls. The criteria are a candidate selection screen rather than a complete entry, exit, sizing, or portfolio management system.

Key ideas

• The stated screen requires RSI below 65, a revenue ratio above 1.1 between 2021 and 2018, and a rising 30-day average.
• The Python example adds exclusions for special-treatment stocks and high price-to-earnings ratios.
• Revenue growth and one technical oscillator do not capture a company’s full financial condition or sector context.
• The article recommends combining additional valuation, financial, and industry information with risk controls.
• No backtest or performance evidence is provided, and the example’s revenue data implementation may not match the stated years.

Tags

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