Chinese Stock Screening with Rising Lows and a Rising DEA

Summary

This Chinese equity screening strategy combines amplitude above 1, rising lows, and a rising DEA value from MACD. The article also lists formula conditions involving moving averages and Bollinger Bands, and describes a sell rule tied to a close below the Bollinger middle band. It includes example implementations for a charting platform and Python, though the code and stated rules do not align perfectly in every detail.

The article explains that the filters aim to find stocks with a steady price structure and an upward trend. It cautions that strict conditions may exclude promising stocks and that broad market swings can hurt selections. Suggested extensions include adding RSI and fundamental or financial data. No backtest results or performance evidence are provided, so the strategy's effectiveness is unestablished; the entry definitions and stop condition would need precise validation before research or use.

Key ideas

• The screen looks for amplitude above 1, rising lows, and an increasing DEA reading.
• The article describes additional moving-average and Bollinger Band filters and a related exit condition.
• It warns that strict filters can omit candidates and may perform poorly during broad market stress.
• The document provides example code but no empirical performance evidence.

Tags

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