Screening Chinese Stocks with Moving Averages, PE, and Limit-Ups

Summary

The post proposes a Chinese equity screen combining moving-average overlap, positive price-to-earnings ratios, and repeated daily limit-up moves over a recent window. It interprets several overlapping averages as evidence of price stability or trend, positive PE as a valuation filter, and repeated limit-ups as a sign of market activity. The post then suggests adjustments: fewer required averages, a bounded PE range, and a market-capitalization condition. Its final stated screen uses at least three overlapping averages, PE between zero and twenty, at least two limit-ups in ten days, and market capitalization above a threshold.

These rationales are presented without backtest results, definitions for measuring average overlap, or evidence that the filters predict returns. The post’s opening criteria also differ from its later optimized version, and its code reference is incomplete and includes unrelated template text. Treat it as an informal screening idea; the conditions would need precise definitions, survivorship-aware data, and out-of-sample testing before practical use.

Key ideas

• The proposed screen combines moving-average overlap, PE, recent limit-up frequency, and market capitalization.
• The post changes its initial moving-average and PE conditions in its later suggested version.
• It gives qualitative rationales for the filters but reports no measured strategy performance.
• Implementation details for average overlap and the supplied code reference are incomplete.

Tags

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