Shenzhen Stocks Screened by Valuation, Amplitude, and Moving Averages

Summary

This stock selection recipe combines a price trend filter with valuation and trading-range conditions. It screens Shenzhen main-board stocks for a 20-day moving average above the 120-day average, price-to-earnings and price-to-book ratios within stated ranges, and daily amplitude above a threshold. The article also suggests restricting the universe to stocks listed for more than 180 days and shows example formulas and Python-style implementation details.

The author cautions that moving-average filters can exclude worthwhile companies and that relying on a simple technical signal may produce weak selections. Suggested additions include other indicators and company financial measures, along with market and industry context. The document gives no backtest, performance evidence, or validation of the proposed thresholds. Its sample code and formula descriptions should therefore be treated as implementation references rather than evidence that the screen is profitable; the selection rules alone do not specify entry, exit, or portfolio risk controls.

Key ideas

• The screen requires the 20-day moving average to exceed the 120-day average.
• It applies price-to-earnings and price-to-book bounds to Shenzhen main-board stocks.
• Daily amplitude and a minimum listing history are additional selection filters.
• The author recommends adding financial, industry, and other technical measures.
• The article provides no performance test or trading rules for managing selected positions.

Tags

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