Rising-Trough Stock Screen with High Amplitude in 2021

Summary

The article outlines a Chinese stock-screening idea that selects shares with amplitude above one and rising troughs, using 2021 as the reference year. It describes the approach as purely technical and provides example implementations in a market-platform formula language and Python. The Python sketch retrieves daily price data and compares calculated trough values across several lookback settings; its amplitude calculation uses the standard deviation of highs, which may not match the named amplitude condition exactly.

The article acknowledges that the screen omits company fundamentals, broad market and policy conditions, and operational risks. It also warns that relying on a single year can lead to overfitting, and suggests adding other indicators, fundamental criteria, and a more suitable time span. No historical returns, benchmark comparison, or validation results are reported, and the trough and amplitude definitions would need clarification before reproducing the screen consistently.

Key ideas

• The proposed screen combines amplitude above one with rising price troughs during 2021.
• The article provides illustrative formula-language and Python versions of the screening logic.
• Its Python example uses variability in highs as an amplitude proxy and compares troughs across lookbacks.
• The author identifies missing fundamentals, market conditions, and operating risks as limitations.
• The single-year focus may overfit, and no performance validation is presented.

Tags

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