Combining RSI, Profit Growth, and Institutional Control in a Stock Screen

Summary

This post outlines a Chinese A-share selection rule combining a technical indicator, earnings growth, and a measure described as previous-day major-holder control. Candidates must have a 14-period RSI below 65 and parent-company net profit growth above 20% and no more than 100%. The examples also discuss excluding special-treatment and suspended shares, though the descriptions and sample code do not fully align in how the holder-control condition is measured.

The author frames the combination as a way to find companies with rising profits and notable capital interest, and characterizes it as trend-oriented and potentially suited to medium- or longer-term investing. The post warns that stacking filters may leave too few candidates and recommends tuning the conditions or adding valuation and technical-shape measures. It provides formula and code references, but no backtest, portfolio results, or evidence that the thresholds predict returns. The holder data and profit-growth calculations also require careful definition and point-in-time handling before the screen could be evaluated reliably.

Key ideas

• The proposed screen requires RSI below 65.
• Parent-company net profit growth must exceed 20% and be at most 100%.
• The method adds a previous-day measure of major-holder control.
• The post warns that numerous filters can sharply reduce the candidate universe.
• No performance evaluation is presented, and the holder measure needs careful interpretation.

Tags

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