Stock Screening with RSI, Market Capitalization, and 10-Day Returns

Summary

This Chinese A-share screening example combines three conditions: a 14-period RSI below 65, market capitalization of at least 200 million, and a 10-day price gain above zero but below 35%. It describes the screen in plain language and provides sample formula and Python implementations. The code also applies an upper circulating-market-cap limit of 5.5 billion, which is not present in the stated final selection rule, so the examples are not fully consistent.

The accompanying discussion warns that a single oscillator and a short return window may omit other technical, fundamental, and longer-term considerations. It offers no backtest, performance evidence, or trading rules for entries, exits, and position sizing. The screen is therefore a candidate-generation method rather than a demonstrated strategy; the thresholds and market-cap definition would need validation against the intended universe and data conventions.

Key ideas

• The screen requires RSI below 65, market capitalization of at least 200 million, and a positive 10-day return below 35%.\nThe sample code additionally caps circulating market capitalization at 5.5 billion, despite the final rule stating only a lower bound.\nThe document identifies reliance on RSI and a short horizon as limitations.\nNo performance test or complete entry and 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.