Chinese Stock Screening with RSI, Revenue Growth, and Opening Gaps

Summary

This stock-selection example combines three filters: RSI below 65, revenue in 2021 more than 1.1 times its 2018 level, and an opening price within 6% of the prior close. It proposes selecting the first N qualifying stocks and holding them for one year. The accompanying discussion frames revenue growth as a fundamental screen and RSI and the opening move as price and market-sentiment inputs. Sample code also includes a circulating market-value condition, although that filter is absent from the stated final logic.

The article offers no backtest results or evidence that the combined filters improve returns. It cautions that a single opening-gap measure may respond weakly to market conditions and suggests considering additional sentiment data, such as volume, while avoiding overreliance on a short-term signal. There are inconsistencies to resolve before implementation: the heading refers to a revenue ratio greater than 1, while the body uses 1.1, and the indicator formula shown does not clearly encode all the described conditions. Historical revenue data availability and the one-year holding rule also need specification.

Key ideas

• The screen combines a revenue-growth condition with an RSI ceiling and an opening-gap limit.
• The stated holding period is one year, with a selection of the first N qualifying stocks.
• The sample code adds a market-value filter that is not part of the final stated screen.
• The article warns that sparse sentiment inputs and short-term data can weaken stability.
• The document reports no backtest evidence, and its heading, prose, and formula are not fully aligned.

Tags

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