Screening Profitable Small-Cap Stocks with Rising DEA and High Range

Summary

This screening idea combines a daily price-range condition, a market-cap ceiling of 10 billion yuan, positive net profit, and a rising DEA signal from MACD. The rationale is to find smaller profitable companies with recent price movement and improving short-term momentum. The post gives example formulas and a Python-style outline, but the implementations appear to use different proxies for price movement and the DEA condition, so the precise signal needs careful checking.

No backtest, return series, or comparison with a benchmark is offered. The author notes that DEA can lag, that a single short-term indicator can encourage chasing recent gains, and that narrow filters may overfit or miss stocks. Suggested improvements include combining technical indicators, defining the required size and duration of the DEA rise, and evaluating small companies in industry context. This is a proposed screen, not evidence of profitability, and would require robust data and historical validation.

Key ideas

• The screen combines a price-range filter, a small-cap ceiling, positive earnings, and rising DEA.
• The stated rationale is to pair recent movement with profitability and short-term momentum.
• The formula and Python-style examples may not define the same signals consistently.
• The post warns about indicator lag, overfitting, and a narrow focus on short-term performance.
• It suggests combining indicators and refining the DEA and industry criteria.

Tags

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