Equity Screen for Seven Down Days and Prior Limit-Up Events

Summary

This Chinese equity-selection example combines a current turnover range of 3% to 12% with seven consecutive declining sessions and at least two instances of a close rising by more than 10% within the previous 500 days. The article describes the selection logic and includes sample formula and Python implementations intended to illustrate the conditions.

The historical limit-up filter is presented as a way to identify stocks that have shown substantial price movement, while the article notes that the full screen can be restrictive and may return few candidates. It also cautions that the method omits company fundamentals and financial data, making it difficult to assess value and underlying risk. No backtest or performance evidence is supplied; the code examples may require adjustment for data-source definitions and special cases.

Key ideas

• The screen requires current turnover between 3% and 12%.
• It looks for seven consecutive declining closes and at least two qualifying gains within 500 days.
• The article’s formula treats a rise above 10% as a limit-up event.
• The author warns that strict conditions may produce a small candidate set and omit fundamental information.
• The examples are not accompanied by backtest results or evidence of predictive performance.

Tags

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