Chinese Stock Screening with Volatility, Control, and Rising Trends

Summary

This Chinese stock-selection note describes a short-term screen combining daily amplitude, a measure of controlling-shareholder activity, and rising price trends across three, five, and ten day periods. Its example implementation compares exponentially smoothed closing and opening prices at those horizons, alongside thresholds for amplitude and shareholder activity. The stated aim is to find stocks with notable movement and potential for further gains, with position adjustments and longer holding suggested as possible follow-up decisions.

The article offers indicator rules and sample code, but no backtest, performance data, or evidence that the screen predicts returns. It warns that the approach may encourage buying after prices have already risen, that execution mistakes can cause losses, and that company fundamentals are omitted. It proposes adding market activity, capital flows, valuation and profitability measures, and other technical indicators. Those additions are suggestions rather than tested improvements; the note gives no defined exit rules, risk limits, or validation method.

Key ideas

• The screen combines an amplitude threshold, a controlling-shareholder activity measure, and rising signals across three time horizons.
• It proposes comparing smoothed closing and opening prices to identify an upward short-term trend.
• The article provides sample implementation logic but no performance evidence or backtest results.
• It warns about chasing overvalued stocks and omitting fundamental information.
• Suggested additions include market flows, company fundamentals, and other technical indicators.

Tags

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