A-Share Screen for Profitable Small Caps with Rising MACD Signal

Summary

This note describes an A-share stock screen combining a 14-period RSI below 65, a rising MACD signal line (DEA), market capitalization below 10 billion yuan, and no reported loss in the prior fiscal year. Its rationale is to pair modest momentum conditions and a smaller-company filter with a basic profitability check. The document gives example indicator formulas and Python screening logic, but it does not report backtest results or evidence that the combination generates returns.

The author identifies several limits: the size cutoff excludes larger companies, past profitability may not continue, and other potentially attractive stocks may be missed. The note suggests adding market or fundamental measures and adapting filters to conditions and industries. The sample code is illustrative, and its data retrieval and definitions would need checking before use; the screen itself does not specify portfolio construction, entry and exit rules, or risk controls.

Key ideas

• The screen requires RSI below 65 and a rising DEA line.
• It limits candidates to companies valued below 10 billion yuan.
• It excludes stocks with a loss in the prior fiscal year.
• The document offers sample formulas and code but no performance evidence.
• Past earnings and a narrow size range may not represent future returns or the full opportunity set.

Tags

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