Screening Small-Cap Profitable Stocks After Recent Limit-Up Moves

Summary

This document describes a Chinese A-share screening rule combining daily price range, recent limit-up activity, market capitalization, and positive earnings per share. It selects stocks with an intraday high-low range above 1%, at least one limit-up day in the prior 25 sessions, market capitalization no greater than 10 billion yuan, and positive EPS. The proposed rationale is that larger swings and limit-up moves may signal activity or market interest, while the size and earnings filters are intended to constrain risk.

The article provides example indicator and Python implementations, but no backtest, performance statistics, or evidence that the screen predicts returns. Its own caveats note that historical patterns may not persist, volatile small-cap stocks can be risky, and profitability does not remove industry or management risks. It suggests adding technical and fundamental analysis and considering trading costs; the rule is best treated as a candidate-generation screen rather than a validated strategy.

Key ideas

• The screen requires an intraday range above 1% and at least one limit-up session in the previous 25 trading days.
• It excludes companies above 10 billion yuan in market capitalization and requires positive earnings per share.
• The article offers example formulas and code but reports no backtest or measured returns.
• Small capitalization, volatility, and past limit-up moves can still carry substantial risk.

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