Combining RSI, Parent-Company Profit Growth, and Limit-Up Exclusion

Summary

This stock-selection proposal combines three filters: RSI below 65, year-over-year growth in net profit attributable to parent-company shareholders above 20% and no greater than 100%, and exclusion of stocks that hit the daily limit-up on the prior day. It presents the approach as a blend of technical and fundamental screening, intended to find stocks with profit growth while avoiding recent limit-up names. The document includes example SQL-like and Python code, but does not report a backtest, portfolio returns, or other empirical evidence.

The note acknowledges that valuation measures such as price-to-earnings and price-to-book ratios, other indicators, market conditions, and policy changes could affect outcomes. It suggests adding factors and adapting the selection period to the broader environment. The examples are implementation sketches rather than a fully specified, validated strategy; they do not establish that the filters identify undervalued shares or predict gains. Data definitions and timing for the financial growth measure would also need careful review before use.

Key ideas

• The proposed screen requires RSI below 65 and parent-company net profit growth above 20% and at most 100%.
• It excludes stocks that reached the daily limit-up on the previous day.
• The method combines technical screening with a reported earnings-growth measure.
• The note identifies missing valuation and market factors and offers no performance validation.

Tags

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