Metaverse Small-Cap Screen With RSI and Profitability Filters

Summary

This post outlines a Chinese equity screen for companies associated with the metaverse theme. It combines an RSI reading below 65 with market capitalization below 10 billion yuan and a history described as having no losses. It also mentions filtering for stocks whose codes begin with 60, though that condition is not consistently reflected in the final rule or the sample code. The rationale combines a measure of recent price strength, a popular sector classification, company size, and profitability.

The article flags several limitations: RSI reflects recent conditions rather than reliably forecasting future returns, market value is not intrinsic value, and thematic sectors can be volatile. Its code examples are illustrative and contain mismatches with the written criteria, including differing profitability and valuation checks. The post recommends broader fundamental, industry, governance, and risk review, as well as exit controls. It provides no backtest, portfolio construction details, or evidence that the combined filters outperform a benchmark; the proposal should be treated as a screening hypothesis.

Key ideas

• The proposed screen combines metaverse-sector membership, RSI below 65, capitalization below 10 billion yuan, and a record of positive profitability.\nThe post also discusses a stock-code prefix filter, but its use is inconsistent across the description and examples.\nRSI, market capitalization, and sector popularity each provide limited information and can mislead when used alone.\nThe author recommends checking growth, valuation, governance, and other company and market factors.\nThe examples do not precisely match the stated rules, and no strategy performance evidence is reported.

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