Screening Chinese Equities by Price Range, Rounded Pattern, and Float Size

Summary

This post describes a Chinese equity screening rule using three conditions: amplitude above a threshold, a rounded price pattern, and tradable share capital no greater than a stated limit. It gives a technical formula that approximates the rounded pattern by comparing the prior close with the five-day high-low range, then combines the conditions as a filter.

The author suggests the volatility condition may identify short-term trading potential and says the rounded shape is intended to favor smoother movement. The post also flags that focusing on float size can exclude other important company fundamentals, and that a strict float cap can narrow the candidate pool. It recommends adding valuation measures and adjusting parameters to market conditions. No backtest, performance evidence, entry or exit rules, or risk sizing method is provided, so the proposed rationale remains unvalidated.

Key ideas

• The screen combines a minimum amplitude condition, a rounded price shape, and a maximum tradable share count.
• The rounded shape is approximated from the recent five-day high-low range.
• The author proposes adding valuation measures to account for company fundamentals.
• The post gives no performance test or complete trading and risk management rules.

Tags

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