Screening Profitable Small-Cap Stocks with Rising Lows

Summary

This stock-screening strategy combines price movement, company size, profitability, and chart structure. It seeks stocks with daily range above 1%, market capitalization no greater than 10 billion yuan, positive net profit in each of the latest four quarters, and rising lows. The examples also suggest using a positive change in On-Balance Volume and ranking candidates.

The document presents screening conditions and example formula and Python implementations, but gives no backtest, portfolio results, or evidence that the conditions predict returns. It cautions that a technical focus can overlook fundamentals, that short-term trading may neglect long-term value, and that identifying rising lows can be subjective. Its suggested improvements include combining fundamental and technical measures and accounting for sentiment and volatility. The code examples and prose do not fully align on measurement details, so the screening definitions would need careful review before use.

Key ideas

• The screen combines a price-range threshold with a market-cap ceiling and recent profitability.
• It seeks a pattern of rising lows as a sign of an improving price floor.
• The examples add positive On-Balance Volume change and ranking as possible refinements.
• The document provides no backtest or evidence of trading performance.
• It flags subjectivity, short-term focus, and neglect of fundamentals as risks.

Tags

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