RPS Stock Quantitative Research Team
RPS Stock platform processes data of 20,000+ global stocks daily. This article is based on our in-depth backtesting of historical data from the four major markets, revealing the effectiveness differences of the RPS indicator in different market environments and parameter optimization strategies.
📌 TL;DR — Core Conclusions
Although the RPS algorithm is the same, the ecology of different markets leads to vastly different performance:
🇺🇸 US stocks: Momentum effect is strongest, RPS250 signal is most stable, suitable for long-term trend tracking.
🇨🇳 China A-shares: Sector rotation is extremely fast, need to shorten the cycle, combining RPS90 and RPS50 with fundamentals has the best effect.
🇭🇰 Hong Kong stocks: Severe liquidity differentiation, must overlay volume filter, otherwise high RPS may be "fake stocks".
🇯🇵 Japanese stocks: Heavily affected by exchange rates, high RPS stocks often concentrate in specific styles (e.g., export-oriented value stocks).
I. The U.S. Stock Market: Birthplace of RPS and Best Testing Ground
🇺🇸 US Stocks (NYSE + NASDAQ)
Sample SizeApproximately 8,000 stocks
Momentum EffectExtremely Strong
Recommended Primary CycleRPS250 (one year)
Effectiveness Rating⭐⭐⭐⭐⭐
Market Characteristics:The US stock market is an institutional-led mature market with extremely strong 'stronger wins' momentum effect. William O'Neil's CANSLIM system is precisely summarized based on US stock historical data.
RPS Strategy Recommendations:
- Stick to Classic Standards:US stocks fully apply the classic
RPS250 ≥ 80(even 90) standards.
- Cup with Handle Breakout:US stocks with high RPS have extremely high win rates when breaking out of the 'cup with handle' (Cup with Handle) pattern.
- Pay Attention to EPS:US stocks place extreme importance on performance; stocks with high RPS and EPS (earnings per share) growth > 25% are often super bull stocks.
II. A-Share Market: Short-Term Fast Trading and Extreme Rotation
🇨🇳 A-shares (Shanghai, Shenzhen, and Beijing Stock Exchanges)
Sample SizeApproximately 5,300 stocks
Sector RotationExtremely Fast
Recommended Primary CycleRPS90 + RPS50
Effectiveness Rating⭐⭐⭐⭐
Market Characteristics:A-shares have high retail participation, obvious policy-driven and theme speculation. The market often presents the characteristics of 'short, flat, fast', and sector rotation speed far exceeds US stocks.
RPS Strategy Recommendations:
- Shorten Calculation Cycle:A-shares using RPS250 often lag. In practice, it is recommended to shorten the core observation cycle to RPS90 (about half a year) 和 RPS50 (about earnings report cycle)。
- Multi-cycle Resonance:Find
RPS20 > RPS50 > RPS90 > 80 stocks, which typically represent the leading names of the main theme into which capital is flooding.
- Avoid consecutive-limit-up speculative stocks:A-shares have daily price limits, so a high RPS may simply reflect consecutive-limit-up speculative stocks driven by pure chip-game dynamics. Always filter with fundamentals (e.g., the C and A of CANSLIM).
III. Hong Kong market: liquidity discount and polarization
🇭🇰 Hong Kong stocks (Hong Kong Stock Exchange)
Sample SizeApprox. 2,500 names
Liquidity divergenceSevere
Recommended Primary CycleRPS120 (half year)
Effectiveness Rating⭐⭐⭐
Market Characteristics:Hong Kong is an offshore market influenced by both foreign capital (pricing power) and southbound capital (liquidity). The biggest problem is a large universe of neglected penny stocks and poor-governance “shell” stocks.
RPS Strategy Recommendations:
- A liquidity overlay is mandatory:When using RPS in Hong Kong stocks,you must exclude stocks with average daily turnover below 1000 million HKD. Otherwise you will find that the entire top 10 of the RPS ranking consists of manipulated penny stocks.
- Watch southbound capital:High-RPS Hong Kong stocks accompanied by a sustained rise in Stock Connect (southbound) ownership enjoy substantially higher conviction.
- Combine with a high-dividend strategy:In recent years, high-RPS Hong Kong stocks have been highly concentrated in the “China Special Valuation” theme and high-dividend sectors.
IV. Japan market: foreign-driven and FX-sensitive
🇯🇵 Japan stocks (Tokyo Stock Exchange)
Sample SizeApprox. 3,800 names
Foreign-capital dominatedPronounced
Recommended Primary CycleRPS120 + RPS250
Effectiveness Rating⭐⭐⭐⭐
Market Characteristics:Japanese equities have recently made all-time highs, driven mainly by foreign inflows and corporate-governance reform (e.g., PBR improvement requirements). Market style has favored value and overseas-oriented companies.
RPS Strategy Recommendations:
- FX sensitivity:Japan’s RPS rankings are highly correlated with the yen. During yen-depreciation cycles, exporters (e.g., Toyota, Sony) see RPS surge; during yen-appreciation cycles, domestic-demand names lead on RPS.
- Focus on trading houses and semiconductors:Recently, high-RPS Japanese stocks have clustered in the five major trading houses and the semiconductor supply chain (e.g., Tokyo Electron, Advantest).
- Overlay a PBR filter:In Japanese equities, looking for
RPS120 > 80 且 PBR（市净率） < 1 stocks that are improving is currently the strategy most favored by institutions.
V. Summary: How to use RPS Stock across markets?
The RPS Stock platform updates RPS data for these four markets every day. Our recommendations:
- 做US stocks: Go straight to RPS250 and look for technology stocks making all-time highs.
- 做China A-shares: Watch RPS50 and RPS90 closely and follow rotation among the market’s leading sectors.
- 做Hong Kong stocks: First apply a turnover filter, then look at RPS120 to find stocks crowded by southbound capital.
- 做Japanese stocks: Combine with the yen trend and use RPS120 to identify names being bought by foreign investors.
🌍 Explore global high-momentum stocks
Switch markets to view today’s live RPS rankings for A-shares, US stocks, Hong Kong stocks and Japanese stocks
Enter the Global RPS Screener →