Combining Turnover, a KDJ Golden Cross, and Profit Growth in A-Share Screening

Summary

This A-share selection rule combines a turnover ratio between 3% and 12%, a newly formed KDJ golden cross, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. The post frames these as measures of trading activity, technical direction, and company earnings growth. It includes a formula example and a Python illustration, though the code’s profit-growth comparison appears inconsistent with the stated upper bound and should not be treated as a faithful implementation.

The note provides no backtest, sample results, or evidence that the combination predicts returns. It cautions that high earnings growth may not persist and that company and industry conditions are not fully captured. Suggested additions include valuation, return on equity, and expense ratios, as well as broader modeling, but these proposals are not tested. The screen therefore serves as a rule description rather than a validated strategy.

Key ideas

• The screen requires turnover between 3% and 12%, a newly formed KDJ golden cross, and parent-company net profit growth above 20% and at most 100%.
• The proposed filters combine market activity, a technical signal, and earnings growth.
• The Python example appears inconsistent with the stated growth limit, so its logic needs review.
• The post supplies no performance evidence and notes that high growth may not be sustainable.

Tags

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