Equity Screening with Amplitude, Arc Shape, and Concentration Filters

Summary

The document proposes a Chinese equity screen combining amplitude above one, a rounded price pattern, and a concentration condition described as below 20% for the 70-period measure. It presents these filters as a way to find stocks with trading activity, smoother price movement, and a more balanced distribution. It also suggests adding fundamental measures such as return on equity and debt ratio, or market features such as turnover, volume, and market capitalization.

The article gives no backtest, sample period, or performance evidence. Its example formula includes conditions that appear inconsistent: it specifies concentration above 70 and below 20 at once, so the rule cannot be applied as written without clarification. The meaning and calculation of the rounded pattern and concentration measure are also not explained in detail. The author acknowledges that technical screening omits fundamentals and that rigid concentration thresholds may exclude candidates. Treat the proposal as an incomplete screening idea rather than a validated trading strategy.

Key ideas

• The screen combines an amplitude threshold, a rounded price pattern, and a concentration filter.
• The article recommends considering fundamental measures and additional liquidity or size conditions.
• No empirical performance results or testing details are provided.
• The concentration rules shown in the description and formula conflict and need clarification.

Tags

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