Chinese Stock Screening with Amplitude, Positive PE, and Limit-Up History

Summary

This Chinese equities screening idea selects stocks with daily amplitude above 1, positive price-to-earnings ratios, and at least two limit-up moves in the prior 500 days. The article interprets amplitude as a sign of trading activity, positive PE as a basic profitability filter, and prior limit-ups as evidence of market attention. It suggests combining these conditions with other technical, fundamental, industry, and sentiment analysis before making selections.

The document provides illustrative indicator and Python examples, but the implementation is incomplete: the PE condition is omitted, and the limit-up calculation does not clearly establish a reliable test against actual exchange price limits. It reports no backtest or performance evidence. The proposed filters are broad, depend on historical price behavior, and do not address how to enter, exit, or size positions. The article itself notes that amplitude and PE alone are insufficient and that past limit-up frequency does not predict future returns.

Key ideas

• The screen combines amplitude above 1, positive PE, and at least two limit-up events over 500 days.
• Amplitude is presented as a proxy for price activity, while positive PE is used as a profitability filter.
• Historical limit-up frequency may reflect attention but does not establish future performance.
• The examples are illustrative and omit a working PE test and a clearly validated limit-up calculation.
• The article recommends adding technical, fundamental, industry, and market sentiment analysis.

Tags

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