Screening Chinese Stocks with RSI, Trading Flow, and Dividend Payout

Summary

This stock-selection approach combines a technical condition, a trading-flow measure, and a historical dividend criterion. It screens for RSI below 65, external trading volume relative to internal volume above 1.3, and a 2019 payout ratio above 25%. The article frames these as ways to consider market activity and company distributions alongside price behavior, and suggests broadening the screen with other technical and financial measures.

The post gives example formula and Python snippets, but they do not clearly implement all the stated criteria consistently: the code includes additional valuation and size filters, while the shown logic does not transparently calculate the external-to-internal volume ratio. No backtest, return data, or comparison is supplied. The article cautions that RSI can fail, one year of dividends does not establish overall financial health, and difficult market conditions can undermine decisions. The screen is therefore a candidate-generation recipe, not evidence of a reliable strategy.

Key ideas

• The stated screen requires RSI below 65, an external-to-internal trading volume ratio above 1.3, and a 2019 payout ratio above 25%.
• The approach combines a technical indicator with trading activity and a historical dividend measure.
• The article recommends considering additional technical and financial information to reduce reliance on a few filters.
• The example code does not clearly match every stated selection condition, and 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.