RSI and Industry Filters with a Prior-Day Limit-Up Exclusion

Summary

This Chinese stock-selection example combines an RSI threshold below 65 with membership in the beverage and alcohol import-export industry, then excludes stocks that hit the upper price limit on the previous day. Its stated rationale is to seek stocks with relatively subdued momentum in the specified industry while avoiding immediate follow-through after a sharp price rise. The document references a 14-period RSI and includes examples of screening logic in formula and Python form.

The post warns that limit-up data may be inaccurate and that industry classifications can be ambiguous. It suggests adding filters such as volatility or adjusting the limit-up threshold, but supplies no backtest, performance results, or precise evidence that the selection rationale works. The strategy description also does not fully clarify how the RSI condition is applied in the code example, so implementation details should be checked before use.

Key ideas

• The screen selects stocks with RSI below 65 in a specified beverage and alcohol industry group.
• It excludes stocks that reached the upper price limit on the previous day.
• The example references a 14-period RSI and illustrates the filter in multiple formats.
• The proposed rationale is to avoid buying stocks immediately after a sharp price rise.
• The document flags data quality and industry-classification ambiguity, and provides no performance evidence.

Tags

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