Screening Chinese Stocks for Volatility and Recent 10% Gains

Summary

This article proposes a Chinese stock screen based on high daily price range, at least one daily gain of 10% or more within the prior 25 trading days, and a listing-age condition. It frames these filters as a way to find active, strong-performing shares, then suggests adding financial-health and profitability measures. The article provides example formulas, but the listing-age cutoff is left unspecified and the fundamental filter is only a placeholder.

The screen is not supported by backtest or live trading evidence. Its discussion notes that the volatility and one-day gain conditions may admit unstable stocks and that omitting fundamentals may expose investors to weaker businesses. The example code also does not clearly implement the stated rolling 25-day condition: it compares the current day’s return with a threshold. The screen therefore needs precise definitions and validation before its results can be interpreted.

Key ideas

• The proposed screen combines price range, a recent large daily gain, and a listing-age filter.
• The listing-age threshold is unspecified, and the fundamental filter is not defined.
• The example calculation does not clearly check for a qualifying gain anywhere in the prior 25 sessions.
• The author warns that the screen may select risky stocks because it omits meaningful fundamental analysis.
• No performance evidence is provided.

Tags

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