Screening Chinese Stocks for Wide Ranges and Lower Lows

Summary

This post outlines a Chinese equity screen combining a daily range above 1%, dates in 2021, and a current low below the prior day's low. Its final stated selection also adds valuation filters: a price-to-earnings ratio below 30 and a price-to-book ratio below 5. Formula and Python examples show how to apply range, date, lower-low, and valuation conditions to stock data.

The author interprets the lower low as a sign of a recent decline and suggests short-term trading, while noting that financial conditions and the volatility of wide-range stocks add risk. The post offers no backtest, trade rules, or performance evidence, so the screen is not validated as a strategy. There is also a mismatch between the prose, which describes the range relative to the prior close, and the displayed formula, which divides by the low; the implementation details therefore merit checking before use. Risk controls and additional technical or fundamental analysis are suggested.

Key ideas

• The proposed screen combines a range above 1% with a current low below the previous day's low.
• The final selection adds price-to-earnings below 30 and price-to-book below 5.
• The post provides formula and Python examples but reports no strategy performance evidence.
• The range calculation differs between the prose and displayed formula, so implementation should be verified.
• The author identifies volatility and omitted financial information as risks and recommends risk controls.

Tags

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