Screening Stocks by Price Range, Turnover, and Earnings Growth

Summary

This Chinese equity screen combines a daily price range greater than 1%, turnover between 2% and 9%, and year-over-year growth in net profit attributable to parent-company shareholders above 20% and no more than 100%. The intended logic is to combine trading activity with a measure of profitability growth. Formula and Python examples illustrate how the author proposes applying those filters, although the examples use specific data sources and implementation assumptions.

The document presents no backtest or evidence that the conditions predict returns. It warns that accounting policies and company decisions can affect financial data, while industry, macroeconomic conditions, news, and market sentiment may also influence prices. It recommends considering broader financial, market, and trend information, along with risk controls and position management. The screen itself does not specify how those controls should be designed or tested.

Key ideas

• The screen requires a daily high-low range above 1% and turnover between 2% and 9%.
• It selects for year-over-year parent-company net profit growth above 20% and at most 100%.
• The article provides formula and Python examples but no backtest evidence.
• Accounting choices, market conditions, and news can affect the screen's inputs and outcomes.
• The author recommends broader analysis and risk and position controls without defining them.

Tags

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