Screening Small-Cap Stocks by Price Shape, Volatility, and Profitability

Summary

This Chinese-language post presents an equity screening idea combining amplitude above 1, a rounded price pattern, market capitalization below 10 billion yuan, and no recent losses. It explains the intended rationale: price movement may offer short-term trading opportunities, a smoother chart shape may temper risk, and smaller profitable firms may have growth potential. A sample formula translates parts of the screen into a five-period price-range condition, a market-cap filter, and a check for no negative net profit across four periods.

The post offers no backtest, performance figures, or precise definition of the rounded pattern beyond the formula. It cautions that market volatility and industry effects are omitted, and that the screen may miss other opportunities. It suggests adding market and sector context, management and financial analysis, capital flows, growth measures, and better-chosen indicator periods. The formula should therefore be treated as a rough screening template, not evidence of a validated strategy.

Key ideas

• The screen combines a price-amplitude threshold and a rounded price-range condition.
• It limits candidates by market capitalization and recent profitability.
• The sample formula uses a five-period range and checks net profit across four periods.
• The author notes that sector conditions, market risk, and company fundamentals need further analysis.
• No backtest or evidence of strategy performance is provided.

Tags

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