Screening Chinese Stocks by Recent Gains, Price Strength, and Position Growth

Summary

The post presents a stock screen based on three conditions: today’s position-growth share exceeds 5%, the close is above the previous day’s low, and the 10-day return is positive but below 35%. It frames these filters as a way to find stocks with recent upward price movement and increased investor positioning. The page also sketches possible refinements using valuation ratios and moving averages, including price-to-earnings and price-to-book limits and a short-term moving average above a longer-term one.

The rationale is descriptive rather than evidence-based: the post supplies no backtest, portfolio rules, benchmark, or transaction-cost analysis. It acknowledges that the broad filters may select weak performers and that short-term price conditions can miss longer-term value considerations. The accompanying code-like example is illustrative and includes extra filters beyond the headline screen, so the exact selection rule would need clarification before testing or implementation.

Key ideas

• The core screen combines position growth above 5%, a close above the prior low, and a positive 10-day return below 35%.
• The author interprets these conditions as signs of recent buying interest and price strength.
• Suggested refinements include valuation ratios and moving-average conditions.
• The post provides no backtest or evidence that the screen produces positive returns.
• The example adds filters beyond the headline criteria, leaving the final rule ambiguous.

Tags

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