Screening Stocks by Buying Activity, Profit Growth, and a Rising 30-Day Average

Summary

This proposed Chinese stock screen combines a reported daily increase in buying activity above 5%, year-over-year net profit growth between 20% and 100%, and an upward-sloping 30-day moving average. The article presents these as signs of capital inflow, profitable growth, and positive short-term direction. Its final selection logic further adds price-to-earnings below 30 and price-to-book below 2, though these valuation filters are absent from the initial list of conditions.

The document includes sample calculations and selection logic, but no backtest, live results, or evidence that the conditions predict returns. It acknowledges that the approach covers only short-term trend and earnings growth, and may struggle in a weak overall market. The example also leaves ambiguity around how the buying-activity ratio is defined and does not describe portfolio construction or trade exits.

Key ideas

• The proposed screen combines buying activity above 5%, net profit growth between 20% and 100%, and a rising 30-day average.
• The final version adds valuation filters of price-to-earnings below 30 and price-to-book below 2.
• The document supplies illustrative calculations but no performance validation.
• It identifies market weakness and limited fundamental coverage as risks.

Tags

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