Screening Chinese Stocks by RSI, Market Value, and Profitability

Summary

The strategy screens Chinese equities using a combination of a 14-day relative strength index below 65, market capitalization between 200 million and 100 billion, and positive profitability. The final description also specifies no losses over the preceding three years. The post includes example implementations using financial statement fields and daily price data, and describes filtering candidates against the listed conditions.

The rationale is to combine a technical condition with size and earnings filters. However, the document supplies no backtest, portfolio construction rules, transaction cost assumptions, or performance evidence. Its example snippets use different formulations of profitability and historical filtering, so the precise implementation may not match the stated final rule. The post itself warns that RSI alone can be overemphasized and that screening conditions do not ensure future returns or stable results.

Key ideas

• The screen requires RSI below 65 and market value within a specified range.
• It combines price momentum information with positive earnings filters.
• The final rule calls for no losses over the previous three years.
• The examples do not provide backtest evidence or fully consistent implementations.
• The post cautions that these filters do not guarantee profitable or stable outcomes.

Tags

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