Screening Small Profitable Stocks by Range and Control Ratio

Summary

The document describes a Chinese equity screen combining a daily price range above 1%, market capitalization within 10 billion yuan, positive net profit, and a reported control ratio above 21%. It presents the control ratio as a measure of trading volume controlled when the share price falls, and suggests using it as a short-term buying and selling reference. The example code adds volume above three times its five-day average and moving-average conditions, although those additions are not part of the initial screen.

The document recommends supplementing the screen with volume, turnover value, momentum, trend, and fundamental measures, while cautioning that a simple technical screen can be vulnerable to sentiment, volatility, and false signals. It supplies formula and Python examples but offers no performance evidence or backtest results. The control-ratio definition is not substantiated, and the examples do not fully align: their range calculation and added filters differ from parts of the written criteria. These details would need to be checked against the intended data source before use.

Key ideas

• The screen combines a price range threshold, a market-cap ceiling, positive earnings, and a control-ratio threshold.
• The Python example adds unusually high volume and moving-average conditions beyond the stated core criteria.
• The document advises combining technical signals with fundamentals and other trading activity measures.
• No backtest evidence is provided, and the control-ratio definition and example calculations require verification.

Tags

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