Quiet Open

Fonctionnement

Only ChiNext and STAR Market stocks. Four conditions must all hold at the 09:25 call auction: yesterday's close sat in the bottom 30% of its daily range; today's auction price is 0–3% above yesterday's close; auction volume is 0.3–1.0× its recent auction average (a quiet, not a hot, auction); float market cap ¥2bn–¥15bn. Liquidity floors: price ≥ ¥3, auction value ≥ ¥3m, prior-day value ≥ ¥50m, at least 60 trading days listed. At most three names, ranked by auction value. A market switch uses only yesterday's CSI 300: no trades when it is in an uptrend (close above MA20 above MA60) or in a mild pullback (below MA20 with less than an 8% fall over five days); the strategy sits in cash on those days, which is most of the time. Sizing is full capital: yesterday's positions are sold at the open and all equity is split equally across the day's picks (one pick takes the whole account). This assumes the sale proceeds can be used for the same morning's buys and that size is small against the stock's turnover. History: an integer-cent account simulation from Jan 2025, net of commission, stamp duty, transfer fees and an extra 0.10% execution cost each side; drawdown reached −11.5%, and at 0.3% cost per side the return falls from +74% to about +30%.

Conditions de marché idéales

Choppy or sharply falling markets, when weak closes in growth names tend to bounce at the next open.