A Small-Cap Breakout Screen Using Amplitude and Moving-Average Crossovers

Summary

This Chinese equity screening example selects stocks with price amplitude above 1, free-float shares no greater than 5.5 billion, and a supposed start of a major uptrend. The provided formula defines that trend trigger as a short moving average crossing above a longer moving average. Example formulas and Python-style logic combine the three filters to create a candidate list.

The post presents larger amplitude as a source of short-term trading potential and smaller float as a characteristic that may bring higher risk and return. It cautions that a nascent uptrend can be a temporary market theme, that short-term signals may overlook fundamentals and longer-term direction, and that the criteria should be assessed alongside industry and company information. No backtest or performance evidence is supplied, so the proposed screen is an illustrative rule rather than a validated strategy.

Key ideas

• The screen combines amplitude, a free-float share ceiling, and a short-over-long moving-average crossover.
• The crossover serves as the post’s operational definition of an uptrend starting.
• The post associates smaller floats with potentially higher risk as well as return.
• A brief trend signal may fail during sentiment reversals and omit fundamental context.
• The examples provide screening logic but no evidence of historical performance.

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