Chinese Stock Screen for Seven-Day Declines in an Uptrend

Summary

This Chinese equity screening idea combines a turnover filter with short-term weakness and a longer-term trend condition. It selects stocks with turnover between 3% and 12%, seven consecutive daily declines, and a rising 30-day moving average. The intended setup looks for a possible rebound after a sustained pullback while the broader price trend remains upward.

The document describes the conditions and gives sample formula and Python implementations, but it does not report backtest results or performance evidence. Its formula appears internally inconsistent: it compares the 30-day average with itself, while the Python example checks that the latest close is above the 30-day average. These definitions would produce different screens. The author also notes that the approach omits company fundamentals and other technical factors, and suggests adding measures such as valuation ratios or momentum indicators. Those additions are proposals rather than tested improvements.

Key ideas

• The screen requires turnover between 3% and 12%.
• It looks for seven consecutive daily price declines.
• The stated trend filter is a rising 30-day moving average, though the provided formula does not implement that condition clearly.
• The document offers no performance evidence and cautions that fundamentals and other price factors are omitted.

Tags

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