Screening Chinese Stocks by Amplitude, Rounded Price Shape, and Market Value

Summary

This document describes a Chinese equity screen combining amplitude above a threshold, a rounded price pattern over multiple lookback windows, and market capitalization above a minimum. It provides an indicator formula that also restricts the candidates to a transport-equipment industry classification. The stated rationale is to find liquid, relatively orderly stocks while filtering out smaller companies.

The article warns that the screen omits other company fundamentals and that size is an imperfect proxy for quality, potentially excluding smaller opportunities. It suggests adding measures such as return on equity and leverage, and refining the size threshold. No backtest, performance data, or detailed evidence supports the proposed return or risk benefits, and the Python implementation is listed as unavailable.

Key ideas

• The screen combines an amplitude threshold with a rounded price-range condition across several lookback periods.
• It adds a minimum market-capitalization filter and an industry restriction in the example formula.
• The article proposes fundamentals such as profitability and leverage for broader evaluation.
• It provides no performance tests, so the claimed trading benefits remain unverified.

Tags

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