Chinese Stock Screen for Daily Drawdowns and Repeated Limit-Up Moves

Summary

This Chinese equity screen looks for stocks with intraday amplitude above 1, a stated maximum daily decline between 4% and 5%, and at least two limit-up moves during the prior 500 days. It combines current price movement with a history of large positive moves, aiming to find stocks with evidence of past market attention. The article includes formula and Python examples, but the code shown does not clearly implement every stated condition: it checks volume, a positive close-to-close move, and historical large gains, while the amplitude and specified daily decline are not apparent in the Python logic.

The author notes that the rule emphasizes technical behavior and limit-up frequency while overlooking company fundamentals, and may be too short-term focused. Adding fundamental measures and assessing longer-term growth or value are suggested. No backtest results or evidence of predictive returns are presented, so the screen is a heuristic for selecting candidates, not a demonstrated investment method.

Key ideas

• The screen combines an intraday amplitude threshold and a specified daily decline with repeated limit-up events in the prior 500 days.
• The historical limit-up condition is intended to capture stocks with prior strong market attention.
• The example code does not visibly implement all of the written screening criteria.
• The author cautions that the rule is technically focused and omits fundamentals, with no reported performance validation.

Tags

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