Screening Large-Cap Stocks After Seven Consecutive Declines

Summary

This Chinese stock-selection screen looks for shares with daily amplitude above 1%, circulating market capitalization above 10 billion yuan, and seven consecutive declining sessions. The post characterizes amplitude as a measure of trading activity and market capitalization as a size filter; the declining streak is intended to identify short-term weakness. It includes example indicator and Python implementations and limits one example to Shanghai main-board stocks.

The post does not supply backtest results or evidence that the screen predicts returns. It acknowledges that relying on a small set of technical and size criteria omits company fundamentals and industry conditions, and that a short losing streak can encourage poorly timed trading. The implementation examples also describe the seven-day condition in terms of closes relative to moving averages, which may not be equivalent to seven consecutive down sessions. The screen is therefore a candidate filter rather than a fully specified or validated trading strategy.

Key ideas

• The screen combines amplitude above 1%, circulating market capitalization above 10 billion yuan, and a seven-session decline condition.\nOne example restricts eligible stocks to the Shanghai main board.\nThe post offers code examples but reports no strategy performance.\nIt warns that the criteria omit fundamental and industry information.\nThe examples’ moving-average check may not precisely represent seven consecutive declines.

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