Screening Chinese Beverage Importers with RSI and Limit-Up Frequency

Summary

This stock-selection rule combines a 14-period RSI below 65 with membership in China’s beverage and alcohol import-export industry and at least two limit-up sessions in the prior 500 days. The document presents it as a way to pair a technical condition with an industry filter and evidence of past price strength. It also gives formula and Python examples for implementing the screen, including additional market-cap and non-ST filters in the Python example that are not part of the stated core rule.

The author warns that a history of limit-ups may capture short-lived strength, and that false limit-up signals can weaken the results. Suggested extensions include adding indicators and financial measures, ranking candidates, and using stop-loss and position-sizing rules. No backtest results or performance data are reported, so the screen’s predictive value and robustness are not established.

Key ideas

• The core screen requires RSI below 65, beverage and alcohol import-export industry membership, and at least two limit-ups in 500 days.
• The Python example also includes market-cap and non-ST filters beyond the core selection rule.
• Past limit-up activity may indicate strength but may not persist.
• The document recommends combining indicators with financial measures and adding risk controls.
• No performance evidence is supplied to validate the strategy.

Tags

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