A Chinese Stock Screen Combining MACD, Profit Growth, and Market Cap

Summary

This Chinese stock-selection post describes a screen for companies with positive MACD, year-over-year net profit growth above 20% and at most 100%, market capitalization below 10 billion yuan, and no reported losses. Its rationale is to combine price momentum with earnings growth and a size limit. A sample implementation also ranks candidates by recent trading activity and selects a small subset for portfolio orders.

The post identifies several limitations: MACD can lag, strict conditions may leave few candidates, and profit growth alone does not capture debt or asset quality. It suggests adding technical and fundamental measures, loosening the market-cap cutoff, and considering machine learning. No performance results or backtest evidence are provided, and the code examples contain implementation details that may not map exactly to the stated conditions. The screen is therefore a proposal rather than a validated strategy.

Key ideas

• The screen combines positive MACD with bounded year-over-year net profit growth.
• It excludes loss-making firms and limits candidates by market capitalization.
• The example code ranks selected stocks using trading activity and allocates across a small portfolio.
• MACD lag and reliance on a narrow set of financial measures are stated risks.
• The post offers optimization ideas but provides no evidence of strategy performance.

Tags

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