Stock Screening with Relative Volume, Positive PE, and 10-Day Gains

Summary

This post outlines a Chinese equity screen that ranks stocks by volume ratio and keeps the top 100, requires positive price-to-earnings ratios, and selects shares whose 10-day return is above zero but below 35%. It interprets the filters as seeking active stocks with recent gains while avoiding both loss-making companies and the strongest recent price surges. The article then proposes adding KDJ and MACD bullish crossovers to the final selection rules.

The post offers qualitative reasoning, possible drawbacks, and suggestions to add market capitalization, industry, and technical indicators. It provides no historical test, return figures, or evidence that the criteria predict future performance. The discussion also treats positive PE as indicating a level of profitability, but does not examine valuation, accounting quality, transaction costs, or the timing and data definitions needed to reproduce the screen. The proposed additions are screening ideas rather than a validated trading system.

Key ideas

• The screen ranks stocks by volume ratio and retains the top 100.
• It requires a positive PE ratio and a 10-day gain between zero and 35%.
• The post suggests adding bullish KDJ and MACD crossovers to the final rules.
• It gives qualitative risks and possible filters but no backtest or performance evidence.

Tags

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