Screening Profitable Small-Cap Stocks by Amplitude and Ten-Day Return

Summary

This screen combines a price-amplitude condition, a market capitalization ceiling of 10 billion yuan, positive profits, and a ten-day return above zero but below 35 percent. The expanded version specifies positive net profit in each of the most recent four quarters, while also recommending attention to market interest, technical indicators, position limits, and stop losses. Example formulas and Python snippets illustrate the proposed filters.

The post warns that multiple restrictions may leave few candidates and that emphasizing recent returns can favor short-term performance over longer-term company value. It suggests considering valuation, profitability measures such as ROE, leverage, and historical development. No backtest or evidence of profitability is reported, and the code examples leave important implementation details unclear, including the exact market-cap units and the time alignment of financial data. The screen is therefore a set of candidate-selection ideas rather than a demonstrated investment strategy.

Key ideas

• The screen combines amplitude, a market-cap ceiling, positive earnings, and a bounded ten-day return.
• The expanded criteria call for positive net profit across the latest four quarters.
• The post recommends adding valuation, profitability, leverage, and risk controls.
• It warns that strict filters may shrink the candidate pool and emphasize short-term price action.
• No backtest establishes the screen's performance, and implementation details need clarification.

Tags

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