Chinese Stock Screening with Trading Range, Float Value, and RSI

Summary

This Chinese equities screening rule combines daily price range, circulating market capitalization, and a 14-period RSI. It selects stocks whose range exceeds 1%, circulating market value is above 10 billion yuan, and RSI is below 65. The article presents these as market-activity and technical filters, with RSI intended to avoid stocks already in a stronger overbought condition. It also includes example indicator and Python implementations, though the Python example calculates RSI from a broad market index series rather than clearly computing it for each candidate stock.

The article gives no backtest, performance figures, or evidence that the filters predict returns. It cautions that the approach omits company fundamentals and financial condition, and that RSI can still admit stocks in short-term overbought states. It suggests adding moving averages, momentum, and fundamental measures, tailoring the market-cap range, and managing position size and exits. These are proposed improvements, not tested results.

Key ideas

• The screen requires a daily price range above 1%, circulating market value above 10 billion yuan, and RSI below 65.
• The rule combines trading activity and a technical indicator rather than company fundamentals.
• The article warns that RSI may not suit longer-term investment decisions.
• It recommends adding fundamental and technical filters and applying position and exit controls.
• No backtest or measured performance evidence is supplied.

Tags

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