Screening 2021 Metaverse Stocks with an RSI Threshold

Summary

This document presents a simple equity screening rule: select stocks associated with the metaverse theme in 2021 when their 14 period relative strength index is below 65. It gives example implementations in indicator formula notation and Python, with the Python example checking each security's 2021 observations and ordering selected stocks by market capitalization. The accompanying rationale treats a sub-threshold RSI as a sign of limited overbought pressure, but the document provides no backtest, return series, benchmark comparison, or evidence that the screen predicts gains. It also notes that RSI alone omits fundamentals and other drivers, that a short-term price indicator may not remain effective over longer horizons, and that suspensions and financial conditions can matter. Suggested extensions include adding industry, fundamental, capital flow, market capitalization, shareholder, and risk control criteria. The rule is therefore a screening idea, not a validated trading strategy; its result also depends on the definition of the metaverse universe and how the RSI observation date is chosen.

Key ideas

• The screen selects metaverse related stocks in 2021 with a 14 period RSI below 65.
• The document frames low RSI as reduced overbought pressure but supplies no performance test.
• RSI alone leaves out fundamental, financial, and trading interruption risks.
• Additional industry, fundamental, flow, and risk criteria could supplement the screen.
• The selected universe and timing of the RSI measurement affect which stocks qualify.

Tags

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