Mainland China Stock Screening with Turnover, Relative Gain, and RSI

Summary

This post presents a technical stock screen for mainland China equities. It selects shares with turnover between 3% and 12%, a daily gain above 1% relative to a comparison market or sector, and a 14-period RSI below 65. The author characterizes the screen as a way to find stocks with recent price strength while avoiding the highest RSI readings, and provides example formulas for a screening platform and a Python workflow using market data.

The post cautions that a technical-only filter can overlook company fundamentals and be affected by unusual events or broad market moves. It suggests adding valuation, technical, or industry filters, but supplies no backtest, benchmark comparison, or evidence that the rules produce returns. The examples also need careful review before use: the written relative-strength condition refers to same-sector performance, while the sample Python code compares against a broad index, and its RSI calculation appears to operate on close values rather than period-to-period gains and losses. The screen is therefore an illustrative starting point, not a validated strategy.

Key ideas

• The screen combines a turnover band, a daily relative-gain threshold, and an RSI ceiling.
• The post describes the RSI condition as a way to avoid highly extended readings while screening for recent strength.
• Its written sector comparison differs from the sample code’s broad-index comparison.
• The Python example’s RSI calculation should be checked against a standard period-change RSI method.
• The document provides no backtest or evidence that the selection rules are profitable.

Tags

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