Screening Chinese Stocks with RSI, Earnings Growth, and Recent Highs

Summary

This A-share stock-selection proposal combines three conditions: RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders within a stated positive range, and a recent two-day high condition. It presents the combination as a way to mix technical condition, earnings growth, and short-term price behavior. The post also includes reference formulas and sample screening code, but provides no backtest results or portfolio performance evidence.

The author cautions that emphasizing a very short-term high may make the screen sensitive to market noise and could overlook longer-term company prospects. Suggested changes include testing other technical indicators, lengthening the high-price window, or combining the signal with additional filters. These suggestions are not validated in the post. Its stated growth bounds and screening condition should be checked against the data definitions and code implementation before use, and the historical or prospective effectiveness of the screen remains unestablished.

Key ideas

• The screen combines an RSI threshold with a bounded year-over-year net profit growth condition.
• It also requires a recent two-day high-price condition to capture short-term price behavior.
• The post frames the rules as a combination of technical, fundamental, and price-trend filters.
• It warns that a short lookback high condition may be noisy and overlook longer-term business factors.
• No backtest or performance evidence is supplied, and proposed refinements remain untested.

Tags

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