Monthly A-Share Selection with Moving Average Alignment

Summary

This A-share strategy selects stocks using a bullish arrangement of moving averages, then ranks candidates by their price change relative to the previous month’s close. It uses adjusted prices to reduce distortions from dividends and share adjustments. The described signals include 5-, 10-, 20-, 60-, and 120-day averages, with candidates required to meet a specified ordering before the strategy chooses five stocks and rebalances monthly.

The article frames the relative-price filter as a way to avoid stocks that have already risen too far and to seek earlier points in an advance. It provides the screening rules but no backtest results, performance statistics, or evidence that the filter identifies undervaluation. It also notes common trend-following weaknesses: whipsaws in sideways markets, uncertainty about adding to or trimming positions, and lagging signals from moving averages. The method therefore describes a simple technical stock-selection framework, not a validated return expectation; trading costs, execution, and risk controls are not detailed.

Key ideas

• The strategy screens A-shares for a bullish ordering of several adjusted-price moving averages.
• Candidates are ranked by their price change relative to the previous month’s close.
• It selects five stocks and rebalances the portfolio monthly.
• The article identifies sideways-market losses, position adjustments, and delayed signals as limitations.

Tags

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