Screening Beverage and Alcohol Stocks with RSI and Market Capitalization

Summary

The post proposes a Chinese equity screen combining three criteria: a 14-period RSI below 65, membership in the beverage and alcohol import-export industry, and market capitalization of at least 200 million. It frames RSI as a technical condition and industry and company size as selection filters. Formula and Python examples illustrate the intended filters, though the Python example also excludes stocks designated as special treatment shares.

The post supplies no backtest results or evidence that the screen has an edge. Its discussion claims the approach may suit bull or range-bound markets but not bear markets, and flags liquidity risk from smaller companies. The implementation details are not fully consistent: the prose specifies a 200 million threshold, while the Python filter uses a differently scaled market-cap field. The article suggests adding other indicators and financial growth measures, but does not define validation, rebalancing, position sizing, or risk controls.

Key ideas

• The proposed screen requires a 14-period RSI below 65 and membership in the beverage and alcohol import-export industry.
• It also applies a minimum market-capitalization threshold of 200 million.
• The Python example adds an exclusion for special treatment stocks.
• The post flags market regime and liquidity as risks but provides no backtest evidence.
• The prose threshold and the Python market-cap filter may use different units.

Tags

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