Chinese Stock Screen Using Relative Volume, Recent Gains, and Limit-Up Exclusion

Summary

This Chinese stock selection outline combines three filters: ranking candidates by a volume ratio, excluding stocks that hit the daily limit-up on the previous day, and requiring a positive but bounded return over the preceding ten days. The article describes the ten-day gain threshold as below 35%. It presents these conditions as a way to find stocks with recent upward movement while avoiding names that may have just surged sharply.

The post explains the intended rationale but does not provide backtest results, a defined portfolio construction method, or evidence that the filters improve returns. It also contains an incomplete Python example and some unclear descriptions of the price and return calculations, so the implementation cannot be fully assessed from the text. The author suggests adding market capitalization or valuation filters and considering trend-following or mean-reversion methods. Those are recommendations rather than tested extensions, and the post does not define trade entry, exit, or risk controls.

Key ideas

• Candidates are ranked from high to low by a volume ratio.
• Stocks that reached the daily price limit on the previous day are excluded.
• The screen seeks positive ten-day gains below 35%.
• The post gives a rationale for the filters but provides no performance evidence.
• Its code example is incomplete, and implementation details are not fully specified.

Tags

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