Combining RSI, Industry, and Convertible Bond Filters for Stock Selection

Summary

This proposed equity screen selects stocks in the beverage and alcohol import-export industry when their 14-period RSI is below 65 and an outstanding convertible bond short-name field is nonempty. The article frames the conditions as a mix of a technical indicator, an industry classification, and convertible-bond-related information. It provides formula and Python examples, although the Python sample also applies a market-capitalization threshold and excludes special-treatment stocks, conditions absent from the stated final screen.

The article warns that RSI can change quickly, industry prospects are uncertain, bond-related information may not reflect changing company fundamentals, and a small selection universe may be noisy. It suggests supplementing the screen with other indicators and company financial measures. Its rationale includes claims about convertible bonds and potential stock support, but supplies no supporting analysis, backtest, sample description, or returns. The criteria should therefore be read as a preliminary screening idea rather than an evaluated trading strategy.

Key ideas

• The proposed screen requires RSI below 65, a beverage and alcohol import-export industry classification, and a nonempty outstanding convertible bond field.
• The article combines a technical condition with industry and bond-related filters.
• The Python example adds market-capitalization and special-treatment filters beyond the stated final criteria.
• The author identifies changing RSI, uncertain industry prospects, and noisy small samples as risks.
• No backtest or evidence of profitability is included.

Tags

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