Screening Chinese Stocks by Turnover, Three Down Days, and Control Ratio

Summary

This stock selection rule combines a turnover range of 3% to 12%, three consecutive declining sessions, and a reported control ratio above 21%. The article frames the high control ratio as a sign of concentrated holdings or buying by large investors, while the three down days may identify stocks that have recently weakened but could recover. It includes example implementations for screening and fetching stock data.

The post gives a rationale for the conditions, but no backtest, performance figures, or evidence that the control ratio predicts a rise. It also flags the risk of relying on that measure while omitting other technical inputs such as relative strength and volume. The code examples use different calculations to represent the conditions, so they should be checked against the stated screen before use. The rule is a hypothesis for screening, not a validated trading system.

Key ideas

• The screen requires turnover between 3% and 12%, three declining sessions, and a control ratio above 21%.
• The author interprets a high control ratio as possible concentrated buying by large holders.
• The article offers code examples but provides no backtest or performance evidence.
• It warns that the screen omits other technical measures and can select stocks that continue to fall.

Tags

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