Screening Small-Cap Stocks for Recent Limit-Up Moves

Summary

The proposed screen selects companies with a daily high-to-low range above one percent, market capitalization no greater than ten billion yuan, positive average net profit, and a limit-up event within the past month. The document then outlines refinements: require a relative-strength reading of one, screen for price near its short-term moving average, and weight candidates using earnings growth. Its sample code adds filters based on predicted earnings growth, valuation ratios, and cash flow, then ranks the remaining stocks using a score tied to moving-average distance and earnings growth.

The author warns that the initial screen emphasizes short-term price action and may miss financial quality, management, and growth prospects; a recent limit-up does not guarantee continued gains. The suggested refinements are not validated with data, and the code’s assumptions and field definitions are not explained. It also contains potentially conflicting valuation filters and does not provide a backtest, execution rules, or risk controls, so the screen should be treated as a proposal rather than evidence of an effective strategy.

Key ideas

• The initial screen combines price range, market capitalization, profitability, and a recent limit-up event.
• Suggested refinements add relative strength, moving-average proximity, and earnings-growth weighting.
• The sample code also filters predicted earnings growth, valuation measures, and cash flow.
• The document cautions that short-term price signals do not establish durable business quality or future returns.
• No backtest or risk-management method is provided.

Tags

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