Screening Chinese Stocks by RSI, Daily Range, Profitability, and Market Cap

Summary

This stock screen combines three filters: an RSI reading below 65, daily price amplitude above 1, and a market capitalization below 10 billion yuan. It also describes the candidates as companies without losses. The accompanying Python example uses historical price data and company fundamentals, including earnings and revenue fields, to identify stocks meeting the conditions. The stated intent is to find smaller, profitable firms with room for price appreciation.

The post offers no backtest, benchmark, portfolio construction rules, or evidence that the screen produces positive returns or lower risk. It cautions that market capitalization and profitability alone omit business quality, and that RSI and amplitude can mislead when used without trend context or adaptation to market conditions. Suggested refinements include adding broader fundamental measures and tracking RSI direction. The example’s data fields and calculations would need careful validation before use; the article does not establish that the implementation faithfully measures each stated condition.

Key ideas

• The screen combines an RSI threshold, a minimum price amplitude, a market capitalization ceiling, and positive profitability criteria.
• The post frames the filters as a way to find smaller profitable stocks with potential for appreciation.
• It warns that RSI and price amplitude can give misleading signals without trend and market context.
• It recommends adding more fundamental information and assessing changes in RSI over time.
• No backtest or performance evidence is supplied.

Tags

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