Combining RSI, Profit Growth, and Market Cap for A-Share Screening

Summary

This stock screen combines a 14-period RSI threshold with fundamental and size conditions. It looks for A-share companies whose RSI is below 65, whose year-over-year parent-company net profit growth is above 20% and no greater than 100%, whose market capitalization is at most 10 billion yuan, and whose profits and shareholder equity are positive. The document provides both a database-query example and a Python outline, and describes the screen as seeking smaller companies with positive earnings and growth while avoiding very high RSI readings.

The article cautions that the rules omit other relevant information, including industry prospects and capital structure, and that market conditions and policy changes can affect results. It proposes adding liquidity, valuation, trend, or volume measures and considering stronger firms within each industry. The examples do not establish predictive value or report backtest performance. The Python outline also calculates profit growth from changes in net profits, so its data frequency and alignment would need to match the intended year-over-year measure before use.

Key ideas

• The screen combines an RSI ceiling with positive profit, positive equity, and bounded profit-growth conditions.
• It limits the stock universe by market capitalization and focuses on A-shares.
• The article supplies query and Python examples but reports no backtest results.
• Industry prospects, capital structure, market conditions, and policy changes remain outside the basic screen.
• Suggested extensions include liquidity, valuation, trend, volume, and industry-relative filters.

Tags

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