Chinese Stock Screen: Turnover, Seven-Day Decline, and Long-Term Average

Summary

This Chinese stock-screening note describes selecting equities with turnover between 3% and 12%, seven consecutive daily price declines, and a price above its 250-day moving average. It includes formula and Python examples intended to express those conditions, along with discussion of possible additions such as valuation measures and momentum indicators.

The screen combines a liquidity or activity filter with a recent losing streak and a long-term trend filter. The note offers no backtest, performance figures, or evidence that these rules predict returns. Its headline mentions yesterday’s share price being above 2, but the written logic and examples instead use a comparison with the 250-day average; this discrepancy should be resolved before implementing the screen. The article also cautions that relying only on technical conditions may omit growth stocks and produce unstable selections.

Key ideas

• The screen uses a turnover range of 3% to 12%.
• It seeks stocks whose prices have fallen for seven consecutive sessions.
• The described trend condition places price above the 250-day moving average.
• The headline’s price-above-2 condition conflicts with the body’s moving-average condition.
• The note suggests adding fundamental or momentum filters, but provides no performance evidence.

Tags

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