Chinese Stock Screen Using Institutional Buying and the 250-Day Average

Summary

This Chinese equity screen combines daily price movement, reported institutional participation, and a long-term trend filter. It seeks stocks with amplitude above 1, institutional participation over 30% within five days, and a latest close above the 250-day moving average and the prior close. The accompanying rationale is that higher volatility may identify active candidates while institutional interest and the moving average condition provide additional selection criteria.

The article gives indicator formulas and a Python example, but the implementation is internally inconsistent: its stated previous-day comparison differs from the formula, and its amplitude and institutional participation inputs are not implemented as ordinary data fields in the example. It reports no backtest, performance evidence, or evaluation of transaction costs. The author notes that the screen omits wider market conditions and proposes adding valuation and capital-flow measures. It should therefore be treated as a preliminary screening concept rather than a validated trading strategy.

Key ideas

• The screen requires amplitude above 1 and institutional participation above 30% over five days.
• It also uses a 250-day moving average and a recent closing-price comparison as trend filters.
• The article supplies formulas and sample code, but the code does not consistently implement the stated conditions.
• No performance evidence is presented, and the screen omits broader market and fundamental factors.

Tags

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