RSI and Trading-Flow Filters for Convertible-Bond-Linked Stocks

Summary

This post proposes a stock screen using three conditions: a 14-period RSI below 65, the ratio of outside volume to inside volume at or above 1.3, and a nonempty field for an outstanding convertible bond. It presents the flow ratio as a sign of buying interest and combines it with a short-term technical filter and a convertible-bond-related stock attribute. The post also includes example screening logic and a data workflow for assembling candidate shares.

No backtest, return series, or evidence of predictive value is reported. The article itself notes the risks of relying on short-term technical signals, incomplete fundamentals, and overfitting, and recommends broader inputs and periodic evaluation. The convertible-bond condition is not explained as a return mechanism, and the examples do not establish that the rules are stable or executable across data sources. Treat the screen as a hypothesis to test, not as a demonstrated strategy.

Key ideas

• The proposed screen combines RSI, an outside-to-inside volume ratio, and a convertible-bond-related stock condition.
• The described flow ratio is intended to represent buying interest.
• The post reports no backtest or performance evidence for the selection rules.
• It warns about short-term signal instability and overfitting and recommends broader analysis and periodic review.

Tags

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