Chinese Stock Screen Using RSI, Recent Highs, Size, and Profitability

Summary

This stock selection post combines a 14-period RSI below 65 with a price high equal to the highest high over the past two sessions. It further narrows candidates to companies with market capitalization at or below 10 billion and positive profitability conditions. The stated intent is to pair a short-term price-strength filter with size and financial health criteria. The accompanying code gives examples of calculating RSI and checking recent highs, though its market-cap and accounting proxies may not match the verbal rules exactly.

The post identifies tradeoffs: a narrow set of filters can reduce the number of candidates, smaller companies may lack the stability of larger leaders, and requiring current profitability excludes some firms with growth potential. It suggests adding valuation and industry context, but reports no backtest, benchmark, risk-adjusted returns, or transaction costs. The screen is thus an illustrative selection rule rather than a validated trading strategy, and its platform-specific data formulas require verification before use.

Key ideas

• The screen requires a 14-period RSI below 65 and a current high equal to the maximum high over two sessions.
• It adds a market-cap ceiling of 10 billion and positive profitability conditions.
• The combined filters aim to join a recent-price signal with basic financial criteria.
• A narrow filter set may yield few candidates, and the small-company focus carries stability tradeoffs.
• The post provides no performance testing, and its code’s market-cap proxies may not match the stated rule.

Tags

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