Screening Chinese Stocks by RSI, Profit Growth, and Company Size

Summary

The proposed stock screen combines a technical condition with fundamental growth and company-size filters. It selects stocks with an RSI below 65, year-over-year net profit growth above 20% and at most 100%, and size of at least 200 million. The article includes example query and Python snippets, with the latter calculating a 14-period RSI and filtering for profit growth and size. It also mentions sorting candidates by trading activity.

The author frames the RSI condition as identifying relatively weak stocks that may have room to rise, and profit growth as a measure of company growth. No backtest, returns, benchmark, or other empirical support is provided. The article itself notes that the size threshold can exclude smaller successful firms and that ignoring other indicators may miss candidates. It suggests adding technical or fundamental filters and adjusting size selection by market ranking or industry. The snippets are references, and the text does not establish that the screen is profitable or robust.

Key ideas

• The screen requires RSI below 65 and year-over-year net profit growth above 20% but no more than 100%.
• It also applies a company-size threshold of at least 200 million.
• The example implementation calculates a 14-period RSI and ranks filtered stocks by trading activity.
• The article provides no performance evidence and warns that the filters may exclude worthwhile companies.
• It suggests adding indicators, refining size selection, and tailoring conditions to industries.

Tags

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