Screening Stocks by RSI, Profit Growth, and Turnover

Summary

This stock screen combines three filters: a 14-period RSI below 65, year-over-year net profit growth above 20% and no more than 100%, and turnover between 3% and 12%. The intended mix is a technical condition, a fundamental growth measure, and a trading-activity range. The document includes example formulas and code for applying the conditions to stock data.

The rationale is to find growing companies with moderate trading activity while avoiding an overbought reading under the chosen RSI threshold. However, it reports no backtest, selected-stock count, or returns, so its claims about risk and potential are not supported by empirical results. The stated limitations include overly restrictive filters that may yield few candidates and the possibility of missing short-term surges. The examples also differ in how they describe or calculate profit growth, so implementation requires checking that the data fields and year-over-year measure match the intended thresholds.

Key ideas

• The screen requires a 14-period RSI below 65.
• It selects companies with year-over-year net profit growth above 20% and at most 100%.
• Turnover must fall between 3% and 12%.
• The article provides code examples but no backtest or performance evidence.
• Tightly combined filters may produce few candidates, and data definitions should be checked.

Tags

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