Mainland China Stock Screen Using RSI, Daily Gains, and a Rising 30-Day Average

Summary

This stock-selection rule screens Chinese main-board equities for three characteristics: a 14-period RSI below 65, a daily gain greater than 1%, and an upward-sloping 30-day moving average. The accompanying discussion interprets the RSI as a measure of market conditions and the price and moving-average filters as signs of recent strength and trend direction. Formula references and sample Python code show one approach to filtering and ranking candidates.

The article does not report a backtest or evidence that the screen produces stable returns. It warns that the method omits fundamentals, capital flows, industry conditions, and policy effects, and recommends diversification and risk controls. Its suggested additions, such as volatility and valuation measures, are proposals rather than evaluated improvements. The code and rule descriptions should also be checked for consistency in how daily gains, average direction, and eligible exchanges are defined before practical use.

Key ideas

• The screen combines RSI below 65, a daily gain above 1%, and a rising 30-day moving average.
• It targets main-board stocks and provides formula and Python examples.
• The document gives no backtest or evidence of profitability.
• It identifies omitted fundamentals, capital flows, industry conditions, and policy as limitations.
• Risk controls and diversification are recommended, while proposed extra filters are not tested.

Tags

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