Screening Chinese Stocks by Volatility, Profitability, Size, and Weekly Trend

Summary

This stock-selection screen combines a price-movement condition, a small-company size limit, positive net profit, and an upward weekly trend condition described as crossing above a 30-week moving average. The article presents the combination as a way to find smaller profitable firms with active price movement and a rising broader trend. It also shows sample screening logic and Python code using Chinese A-share data, with additional restrictions related to market segment and tradable market value.

The article cautions that technical conditions can overlook business fundamentals, loose filters may admit weak companies, and weekly data may react slowly to short-term price changes. It suggests adding financial and industry analysis, excluding persistently loss-making firms, and considering other indicators such as volume. It supplies no backtest, performance statistics, or evidence that the screen predicts returns. The formula and code examples do not appear to map every stated rule identically, so implementation details should be checked before use.

Key ideas

• The screen combines price amplitude, a market capitalization ceiling, positive profits, and a weekly trend condition.
• The weekly condition is intended to identify stocks whose broader price direction is rising.
• The examples add market-segment and tradable-value filters to the selection process.
• The article recommends combining technical filters with financial and industry analysis.
• No performance test is provided, and the examples may not implement every stated condition consistently.

Tags

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