A-Share Screen for Low-Loss Small-Cap Stocks with Moderate Turnover and RSI

Summary

This stock selection rule screens for companies with market value below 10 billion yuan, positive profit history, turnover between 3% and 12%, and a 14-period RSI below 65. It combines a size filter and profitability condition with activity and momentum-related technical measures. The article presents the thresholds as a starting point for finding candidates, not as a complete investment process.

The accompanying discussion cautions that a narrow screen can exclude larger leaders and overlook growth or value characteristics. It suggests reviewing company finances, including profit growth, comparing businesses, and considering broader market conditions before acting. The article supplies example selection logic, but provides no backtest, return series, or evidence that the screen outperforms. Its code examples also use data fields and calculations whose definitions may not align perfectly with the stated screening rule, so the results would need careful validation before research or implementation.

Key ideas

• The screen combines a market-value ceiling and positive profitability with turnover and RSI thresholds.
• The stated turnover range is 3% to 12%, and the RSI cutoff is below 65.
• The article recommends adding financial analysis and comparing candidates in their market context.
• No performance evidence is provided, and example data calculations require validation against the stated rules.

Tags

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