Screening Stocks by Turnover, Recent Limit Ups, and RSI

Summary

This Chinese equity screen selects stocks with turnover between 3% and 12%, at least one limit-up event in the preceding 25 days, and a six-period RSI below 65. The proposed combination uses turnover as a measure of trading activity, a recent limit-up as a marker of market attention, and RSI as a momentum condition. The article includes formula and Python-style implementation references, but does not set out entry timing, holding duration, exit rules, or position sizing.

No backtest results or return evidence are reported. The article cautions that activity and recent price excitement can miss company fundamentals and may be less reliable in unstable markets. It suggests considering financial reports, industry conditions, policy changes, stop losses, and diversification. The screening criteria alone therefore describe a candidate selection rule, not a complete or validated trading strategy.

Key ideas

• The screen requires turnover between 3% and 12% and at least one limit-up event in the prior 25 days.
• It also requires six-period RSI to be below 65.
• The article combines trading activity, recent price excitement, and a momentum indicator to identify candidates.
• It warns that these signals omit fundamentals and can be less reliable in unstable markets.
• No backtest evidence, holding period, or exit plan is provided.

Tags

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