Screening Chinese Stocks with RSI and Recent Limit-Up Days
Summary
The document presents a Chinese equity screening rule that selects stocks with RSI below 65 and more than two limit-up days in the prior ten days, while excluding the STAR Market. It frames RSI as a technical condition and recent limit-ups as a way to identify stocks with strong recent price action. A Python example outlines screening a stock universe using current quotes, historical prices, RSI, and limit-up counts, although its exclusions and limit-up calculation are implementation-specific.
No backtest, benchmark comparison, or performance evidence is provided, so the screen’s effectiveness is not established. The article notes that a technical-only filter may overlook company fundamentals and industry conditions, and that new listings may have too few limit-up days to qualify. It suggests adding valuation or profitability criteria, considering industry differences, adjusting thresholds, and applying risk controls. These are general suggestions rather than tested improvements, and the stated rule alone does not specify portfolio sizing, exit conditions, or transaction costs.
Key ideas
- The screen requires RSI below 65 and more than two limit-up days during the prior ten days.
- It excludes STAR Market stocks from consideration.
- The article provides a code example but no backtest or evidence of investment performance.
- A price-only screen can miss fundamental and industry information.
- Newly listed stocks may fail the limit-up condition despite potential merit.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.