Chinese Stock Screen for Large Daily Ranges and 4–5% Declines

Summary

This stock-selection idea screens for shares with an amplitude above 1, a daily decline between 4% and 5%, and a closing price of 18.5 yuan. It frames the decline as a possible reversal factor and combines it with a range measure and a fixed price filter. The post includes example formula and Python-style selection logic, but does not define the amplitude calculation in detail or provide selected stocks, a backtest, or return and risk statistics.

The author acknowledges that the rules are simple and may misclassify stocks in volatile markets. A fixed share-price cutoff can also make comparisons across industries misleading. The document suggests adding measures such as market capitalization and valuation. There is an internal inconsistency: the heading refers to a price of 18, while the body specifies 18.5 yuan. The example code is illustrative, so the exact implementation and screening results would need verification.

Key ideas

• The screen combines amplitude above 1 with a daily loss between 4% and 5% and a closing price of 18.5 yuan.
• The proposed rationale treats a sharp daily decline as a possible reversal cue.
• The post provides example selection logic but no performance evaluation.
• A fixed price threshold can distort comparisons across industries.
• The heading says 18 while the detailed rule says 18.5 yuan.

Tags

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