Chinese Stock Screen Using RSI, Mid-Cap Range, and Three-Day Declines

Summary

The document proposes a short-term Chinese stock screen that combines RSI below 65, a circulating market capitalization between 5 billion and 10 billion yuan, and three consecutive daily declines in closing price. It describes RSI as a way to assess recent overbought or oversold conditions and uses the declining closes to identify stocks with downward short-term movement. The sample code also excludes stocks marked ST.

No backtest, return series, or comparison is provided, so the screen’s effectiveness is unverified. The post notes that these few criteria omit broader market and industry conditions, fundamentals, and liquidity or capital-flow information, and that the approach may be better suited to short investment horizons. It suggests adding other technical, fundamental, and flow measures, but does not specify how to combine them or define a complete entry, exit, and risk-management plan.

Key ideas

• The proposed screen requires RSI below 65, circulating market capitalization from 5 billion to 10 billion yuan, and three consecutive lower closes.
• The example code excludes stocks marked ST before applying its other filters.
• The document provides no backtest results or evidence that the criteria produce profitable trades.
• It warns that the limited filters omit market context, industry conditions, and company fundamentals.
• The suggested improvements include adding technical, fundamental, and capital-flow variables.

Tags

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