Stock Screening with RSI, Beverage-Import Industry, and a Low-Price Filter

Summary

This note proposes a Chinese equity screen using an RSI threshold below 65, membership in the beverage and alcohol import-export industry, and a price below 12. It presents the combination as a way to pair a technical condition with an industry classification and a low nominal price. Formula and Python examples are included, although the Python example also filters for market capitalization of at least 200 million and excludes special-treatment stocks, so its criteria do not fully match the stated rule.

The article offers no backtest, sample selection, or performance evidence. Its explanation of a low share price as a margin of safety is not established by the method, and RSI or industry membership alone does not establish fundamental quality. The note itself acknowledges that simple filters can be vulnerable to market changes and recommends adding financial measures, other indicators, stop-loss rules, and position management. These suggestions are not tested in the document.

Key ideas

• The stated screen combines RSI below 65, a beverage and alcohol import-export industry classification, and price below 12.
• The Python example adds a market-capitalization floor and excludes special-treatment stocks, unlike the stated criteria.
• The document provides no backtest or performance evidence.
• A low nominal share price does not by itself demonstrate a valuation margin of safety.
• The article suggests adding financial filters and risk controls, but does not evaluate them.

Tags

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