Morning-Star Pattern Screening with Valuation Multiples and Amplitude

Summary

This post outlines a Chinese equity screen combining amplitude above 1%, a morning-star-style price pattern, and valuation constraints: price-to-earnings between 0 and 29.01 and price-to-book between 0 and 3.11. It describes applying these filters to Shenzhen main-board stocks and includes indicator-formula and Python examples intended to combine technical and valuation signals. The Python example adds further checks involving profitability, debt, and market data, though these conditions do not align cleanly with the stated screen.

The document reports no backtest or measured results. It warns that valuation ratios can vary with economic conditions and sentiment, and that a small set of selection rules can leave substantial strategy risk. It suggests adding measures such as return on equity, debt, and profit growth, along with other technical indicators and sector context. The pattern definition and code contain inconsistencies, so the criteria would need clarification and testing before they could be evaluated reliably.

Key ideas

• The screen combines amplitude above 1%, a morning-star-style pattern, and specified price-to-earnings and price-to-book ranges.
• The stated universe is Shenzhen main-board equities.
• The code examples add conditions that differ from the prose and should be reconciled.
• The document gives no performance evidence and notes valuation and model-selection risks.
• It recommends broader fundamental analysis, technical confirmation, and sector context.

Tags

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