Combining RSI, Profit Growth, and Auction Turnover to Select Chinese Stocks

Summary

The article describes a Chinese A-share screening rule that combines a technical filter with company earnings growth. It selects stocks with RSI below 65 and year-over-year growth in net profit attributable to the parent company above 20% and no more than 100%, then ranks candidates by the day’s auction amount. The original screen takes the top five; the proposed revision broadens the ranking to the top ten or fifteen. SQL-style and Python examples illustrate a screening workflow, though their data handling does not fully establish that the calculations match the stated logic.

The rationale is to pair positive earnings growth with a moderate RSI reading and use auction turnover to narrow the list. The article warns that relying heavily on fundamentals can miss market changes, while ranking by auction amount may exclude otherwise attractive stocks. It suggests considering additional valuation measures, but provides no backtest, performance data, or evidence that the revised screen improves results. The approach is a screening idea, not a complete trading or risk-management system.

Key ideas

• The screen combines RSI below 65 with annual parent-company profit growth above 20% and up to 100%.
• Candidates are ranked by the day’s auction amount, with a suggested expansion from five stocks to ten or fifteen.
• The article presents both SQL-style and Python examples of the screening process.
• The author notes that the filters may overlook market conditions and stocks with higher auction amounts.
• No backtest or performance evidence is provided for the proposed screen.

Tags

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