Screening Chinese Stocks by Range, Float Size, and Recent Highs

Summary

This stock selection note combines three filters: a daily price range above 1%, a tradable share count no greater than 5.5 billion, and a high price described as the highest over two days. It presents the range filter as a way to find active shares, the float limit as a small-cap screen, and the high-price condition as a sign of recent strength. The author recommends adding volume, valuation, fundamentals, or highs from other lookback periods to refine the selection.

The article provides formula and Python examples, but the implementation needs scrutiny: its high-price comparison uses the current high and the high from two sessions earlier, rather than clearly checking the maximum across two consecutive days. It reports no backtest, returns, or validation results. The article also cautions that technical filters can produce false signals and that small-cap shares may carry greater risk.

Key ideas

• The screen selects shares with daily amplitude above 1% and a float of at most 5.5 billion shares.
• The price-strength condition is described as making a recent two-day high.
• The provided formula compares the current high with the high from two sessions earlier, so its lookback interpretation is unclear.
• The author suggests adding volume and fundamental measures to provide more context.
• The note warns that technical screens can produce false signals and small-cap stocks can have elevated risk.

Tags

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