Chinese Stock Screen Using RSI, Market Value, and Price Filters

Summary

This Chinese-language article outlines an equity screen using RSI below 65, circulating market value between 5 billion and 10 billion yuan, and exclusion of stocks that hit the daily price limit on the previous session. Its final stated selection logic also caps the price-to-earnings ratio at 40. The reference implementation calculates RSI from closing prices, applies the filters, and selects up to five stocks when enough candidates qualify, with an additional prior-price and percentage-change check.

The article frames RSI as a way to assess overbought or oversold conditions and the prior-session limit filter as a rough measure of market heat. It does not provide backtest results or evidence that the screen produces superior returns. It acknowledges that the criteria are narrow, may omit promising stocks, and leave out fundamentals and industry context; data quality and update frequency also matter. It suggests adding other factors and stop-loss rules, but does not specify or test them.

Key ideas

• The screen uses RSI below 65 and a circulating market value range of 5 billion to 10 billion yuan.
• It excludes stocks that reached the daily price limit on the previous session and adds a price-to-earnings cap of 40.
• The reference selection process limits output to five stocks when at least five candidates pass its filters.
• The article warns that the screen omits fundamental and industry factors and may exclude potential winners.
• No backtest evidence or measured performance is supplied.

Tags

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