Ranking Small, Profitable Stocks by Trend and Fund-Flow Strength
Summary
This Chinese equity-screening post combines three dimensions: a 20-day moving average above the 120-day moving average, market capitalization below 10 billion yuan with no losses, and fund-flow strength ranked from high to low. The proposed procedure ranks stocks on each dimension, keeps the top 100 for each ranking, combines the results, and selects the top 10 overall. The post describes fund-flow strength using measures such as trading value or turnover, and interprets the moving-average relationship as a short-term trend stronger than the longer-term trend.
The text gives a selection framework and mentions possible use of market data and a composite score, but it reports no backtest or evidence of returns. It notes risks from potentially distorted flow measures, the financial fragility of smaller firms, and pullbacks after strong trends. The post recommends adding financial and technical measures, but does not specify ranking weights or how to resolve differences among the three rankings, leaving key implementation details open.
Key ideas
- The screen requires the 20-day moving average to exceed the 120-day moving average.
- It restricts candidates to companies below 10 billion yuan in market value that report no losses.
- It proposes ranking fund-flow strength, market capitalization, and trend, then combining the rankings.
- It selects the top 100 on each measure and the top 10 after the combined assessment.
- The post gives no backtest and flags flow distortion, small-company financial risk, and trend reversals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.