RSI and Float-Based Filters for Chinese Stock Selection

Summary

This proposed stock screen combines a 14-period RSI below 65 with a tradable market value between 50 and 100 billion yuan and a circulating share count no greater than 5.5 billion. The accompanying example calculates RSI from recent average gains and losses, applies the three filters, and, when at least five names qualify, selects five stocks ordered by percentage change. The author describes the approach as combining a technical measure with company size and tradable float.

The document offers a rule specification and sample implementation, but no historical test, return data, or evidence that the filters produce attractive investments. It cautions that the screen omits fundamentals and other company or market information, and that its float cutoff may exclude candidates. The stated market value and share-count constraints should be checked against the implementation's units and data definitions before use. The method is a screening proposal, not a complete portfolio or execution plan.

Key ideas

• The screen requires RSI below 65, tradable market value from 50 to 100 billion yuan, and circulating shares at or below 5.5 billion.
• The example computes a 14-period RSI from average gains and losses.
• Qualifying stocks are ordered by percentage change, with five selected when at least five pass the filters.
• The screen omits fundamentals and may exclude companies because of its float constraint.
• The document reports no backtest or performance evidence.

Tags

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