Screening Main Board Stocks by MACD, Daily Gains, Size, and Profitability

Summary

The article describes a China A-share screening rule that selects main board companies with MACD above its zero line, a daily price gain greater than 1%, market capitalization below 10 billion yuan, and no losses. It presents the conditions as a combined filter and includes a sample implementation that evaluates stocks, allocates portfolio value across those selected, and exits holdings that no longer qualify.

The article identifies several limitations: the filters may leave too few stocks for diversification, reliance on technical signals can omit other information, and strict size and profitability requirements may exclude attractive companies. It suggests broadening the candidate pool and combining technical and fundamental measures, but gives no backtest, return data, or detailed selection criteria for those additions. The sample code’s profitability and market-cap checks may not precisely implement the stated plain-language conditions, so the rule would need careful validation before use.

Key ideas

• The screen combines positive MACD, a daily gain above 1%, main board listing, a market-cap ceiling, and a no-loss requirement.
• The sample portfolio equally allocates total value across stocks that pass the filters.
• The article warns that strict conditions can reduce diversification and narrow the opportunity set.
• It recommends combining technical and fundamental information, but provides no performance evidence.
• The sample implementation’s financial filters should be checked against the stated screening rule.

Tags

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