Screening Chinese Stocks by Turnover, 10-Day Return, and KDJ Crossover

Summary

This note describes a short-term stock screen combining turnover rate, recent price performance, and a newly formed KDJ golden cross. It selects stocks with turnover between 3% and 12%, a positive 10-day gain below 35%, and a fresh bullish KDJ crossover. The accompanying explanation frames the crossover as a trend signal and the turnover and return bounds as additional selection constraints.

The article cautions that a technical-only screen may favor short holding periods and omit company fundamentals. It also notes that KDJ crosses do not guarantee a favorable entry or exit and that volatility or unexpected events can lead to poor outcomes. The document provides indicator formulas and example code, but no backtest, performance figures, or evidence that the rules are profitable. It suggests combining technical signals with financial and macroeconomic analysis; the sample implementation's details do not fully align with the stated 10-day return condition, so the screen requires careful validation before use.

Key ideas

• The proposed screen requires turnover between 3% and 12%.\nIt selects stocks whose 10-day gain is positive but below 35%.\nA newly formed KDJ golden cross supplies the bullish technical signal.\nThe document warns that technical signals can fail and do not capture fundamentals or unexpected events.\nNo backtest or profitability evidence is presented.

Tags

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