Chinese Small-Cap Screen Combining RSI, Price Range, and Profitability

Summary

This A-share screening strategy combines three filters: market capitalization below 10 billion yuan, positive profitability, and a 14-period RSI below 65. It also defines a “main upward move start” condition as the 30-day highest high and lowest low remaining unchanged from the previous day. The article presents these as a mix of basic financial selection and price-based signals, intended to identify smaller profitable companies with a potential short-term advance.

Formula and Python examples are included, but the article offers no backtest results or evidence that the criteria predict returns. Its own cautions are that historical indicators cannot ensure future gains, the profitability measure may not establish durable earnings quality, and size and profit filters can exclude promising companies. It suggests examining revenue, cash flow, asset quality, and sustained profitability. The examples also contain implementation details that warrant checking, including a fixed sample-stock list and differences between the stated RSI period and the code’s default calculation.

Key ideas

• The screen requires market capitalization below 10 billion yuan and positive profitability.
• It adds a 14-period RSI below 65 and a condition based on unchanged 30-day price extremes.
• The article recommends assessing cash flow, revenue, asset quality, and consistency of profits.
• No backtest evidence is offered, and the sample code may not implement every stated condition as intended.

Tags

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