Screening Profitable Small-Cap Stocks by Range and Positive Return

Summary

The proposed equity screen combines a daily price-range filter, a market-capitalization ceiling of 10 billion yuan, positive net profit across the most recent four quarters, and a positive recent return. The article frames these filters as a mix of price activity, company fundamentals, and basic risk consideration. It supplies example expressions for a screening formula and a Python outline that queries quote and financial data.

The author notes that short-term price conditions can overemphasize market sentiment, that positive returns alone may miss other opportunities, and that the filters can exclude smaller or weaker shares. Suggested refinements include adding technical and financial measures, industry context, stop losses, and position limits. The examples are sketches rather than a tested, reproducible strategy: they rely on external data interfaces and do not report backtest results, transaction costs, or realized performance. The text also shifts between describing one screening rule and a broader proposed version with additional conditions.

Key ideas

• The screen combines price amplitude, a market-cap ceiling, positive quarterly profits, and recent positive return.
• The article proposes adding technical, fundamental, and industry measures to refine candidate selection.
• It highlights the risk of relying on short-term price activity and sentiment.
• Position limits and stop losses are suggested, but no strategy performance evidence is given.

Tags

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