Filtering Beverage and Alcohol Import-Export Stocks with RSI and Concentration

Summary

This document presents a Chinese stock-selection screen based on a 14-period RSI below 65, membership in the beverage and alcohol import-export industry, concentration below 20 percent, and market capitalization of at least 200 million. The post frames the conditions as a combination of a technical indicator, industry selection, and a market-structure measure. It also includes formula and Python examples, but the examples do not actually apply the RSI condition as a filter, despite the written rule.

The author warns that concentration and size thresholds may exclude potential winners, particularly in unstable markets, and suggests adding indicators and company growth measures while adjusting thresholds for industry and cycle. The post provides no historical test or performance evidence. The screen therefore describes candidate filters, with inconsistencies between its narrative and code, rather than a demonstrated investment method.

Key ideas

• The proposed filter combines RSI, industry membership, concentration, and a minimum market capitalization.
• The stated RSI threshold is below 65, using a 14-period measure.
• The formula and Python references do not consistently implement every condition described in the prose.
• The post notes that strict concentration and size filters can exclude candidates and may be less suitable in volatile markets.
• No backtest or performance evidence is given.

Tags

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