Screening for Recent Limit-Ups, Rising Averages, and Added Positions

Summary

This note proposes a short-term Chinese equity screen with three conditions: more than two limit-up sessions in the past 10 days, upward-diverging moving averages, and a daily increase-in-holdings share above 5%. It interprets these filters as signs of buying interest, upward trend, and recent price activity. The document provides a simple pseudocode outline for applying the conditions, though its example uses a threshold of 0.5 for the holdings measure while describing the requirement as above 5%, leaving the units unclear.

The article offers no backtest or return evidence. It warns that fast market changes can produce sharp price swings and says the screen does not by itself establish value or control risk. Suggested improvements include adding valuation measures, technical and fundamental analysis, and stop-loss and take-profit levels. The example code also appends qualifying stocks while iterating over the same list, so it does not clearly implement a reliable sequential filter without correction.

Key ideas

• The proposed screen combines recent limit-up frequency, rising moving averages, and an increase-in-holdings measure.
• The three filters are intended to represent recent activity, trend, and buying interest.
• The article recommends adding valuation and fundamental checks and using exit controls.
• The holdings threshold is ambiguous, and the example code needs correction; 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.