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

Summary

This stock-selection rule screens for shares with daily amplitude above 1%, a tradable share count no greater than 5.5 billion, and at least one daily gain of 10% or more during the prior 25 trading days. The article presents these filters as a way to find volatile, relatively smaller-cap stocks that have recently shown strong price advances. It includes sample implementations in indicator-formula and Python styles, with the Python example intersecting the criteria and ranking candidates by turnover rate before limiting the list.

The article offers a rationale for each condition but supplies no backtest, return series, benchmark comparison, or evidence that the screen identifies growth potential. It cautions that large fluctuations and sudden rallies can carry risk and that the rules omit company fundamentals and industry context. It suggests supplementing the screen with valuation and balance-sheet measures, reviewing the logic as market conditions change, and validating selections to reduce data-related errors.

Key ideas

• The screen combines a daily amplitude threshold, a maximum tradable share count, and a recent large daily gain condition.
• The stated goal is to identify volatile stocks with a recent price-strength signal.
• The Python example intersects the filters and orders candidates by turnover rate.
• The article provides no performance test or evidence that the screen predicts future returns.
• It recommends adding fundamental and industry analysis and periodically checking the selection rules.

Tags

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