Chinese Stock Screen Using Amplitude, RSI, Position Increases, and Valuation

Summary

The document outlines a Chinese stock selection screen combining daily price amplitude above 1, RSI below 65, and a daily position-increase ratio above 5%. It interprets the amplitude and RSI filters as technical conditions and the increase ratio as a sign of capital interest. Its final proposed screen adds a price-to-earnings ratio below 30, aiming to include a valuation condition alongside technical and flow measures. It also gives formula references for the indicators and describes entering the selection conditions into a platform template.

The article cautions that the screen omits a thorough assessment of company fundamentals and industry prospects, so it may select low-quality companies. It also notes that a single day’s position increase may be incidental and suggests considering increases across multiple days. No historical test, portfolio results, transaction assumptions, or evidence of predictive value is provided, so the conditions are best understood as a proposed screening recipe rather than a validated strategy.

Key ideas

• The proposed screen requires amplitude above 1, RSI below 65, and a daily position-increase ratio above 5%.
• The final version adds a price-to-earnings ratio below 30.
• The article treats daily position increases as a possible signal of capital interest, while acknowledging that a single day may be incidental.
• It recommends considering company and industry fundamentals and multi-day position changes.
• No backtest or performance evidence is presented.

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