Screening Profitable Small-Cap Stocks by Range and Recent Performance

Summary

This post outlines a Chinese equity screen for companies below a stated market-cap ceiling that report no losses. It also filters for daily price range above a threshold and excludes stocks that closed at the daily limit on the previous day. The suggested logic adds a relative strength index filter and discusses using industry outlook as an additional consideration. The sample code illustrates combining market capitalization, profitability, price data, industry selection, and RSI.

The post offers no backtest results or evidence that the screen produces attractive returns. Its explanation notes that market capitalization and profitability alone do not fully capture company value, and that short-term price fluctuations can be large. It suggests adding technical measures and assessing prospects in their industry and market context. The written rule and sample formula have some inconsistencies in how recent limits and price range are calculated, so the implementation details may require verification before research use.

Key ideas

• The screen combines a market-cap ceiling and positive profitability with a minimum daily range.
• It excludes stocks that reached the upper price limit on the prior day and adds an RSI reference.
• The sample also describes selecting industries based on market conditions.
• The post provides illustrative logic but no performance evaluation.
• Company quality, market conditions, and formula implementation are limitations to examine.

Tags

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