Combining RSI, Profit Growth, and Industry Filters for Chinese Stocks

Summary

The document describes a Chinese equity screen that combines a 14-period RSI below 65 with parent-company net profit growth above 20% and at or below 100%, plus a beverage and alcohol industry-related condition. It presents the approach as a blend of technical, fundamental, and industry filters. SQL-style and Python examples are included as references for selecting stocks, calculating RSI, and applying growth and industry conditions.

The article does not report backtest results or establish that the screen predicts returns. It explicitly cautions that industry data may be difficult to obtain and that the filters can miss suitable stocks or select unsuitable ones. It suggests testing other sector indicators and adjusting the RSI and growth thresholds, while also considering policy, industry, and broader market conditions. The examples and prose do not fully clarify the timing and construction of the financial growth data, so implementation would require careful data validation.

Key ideas

• The screen combines RSI below 65 with bounded year-over-year parent-company profit growth and a beverage-related industry filter.
• The examples show how technical, financial, and industry conditions can be combined in a stock selection process.
• The article offers no performance evidence for the screen.
• Industry data availability and false inclusions or omissions are identified as risks.
• The suggested refinements include changing thresholds and adding other sector or market factors.

Tags

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