Screening Stocks with a Morning Star Pattern and Profitability Filters

Summary

This Chinese stock-screening note combines a daily price-amplitude threshold, a Morning Star candlestick condition, a market-cap ceiling of 10 billion yuan, and positive net profit after extraordinary items. It frames the combination as joining a technical pattern and price movement with size and profitability filters. The document includes a formula-style statement and a Python example that attempts to screen listed stocks using market data and financial fields.

The note says the method has limited coverage and cautions that past stock behavior does not guarantee future results. It proposes adding revenue or profit growth measures, other chart patterns, and sector-rotation information to broaden the screen. The code’s candlestick checks are simplified and do not clearly implement all standard Morning Star criteria, while the narrative and code may differ in how the conditions are operationalized. No backtest, selection count, or return evidence is supplied, so the screen is best understood as an illustrative rule set rather than a validated strategy.

Key ideas

• The screen combines price amplitude and a Morning Star candlestick condition with market capitalization and profitability filters.
• The stated market-cap limit is 10 billion yuan, and the profitability filter requires positive adjusted net profit.
• The author presents the approach as a mix of technical and fundamental screening.
• The note cautions that the factors cover only part of the investment picture and historical behavior may not persist.
• It gives no backtest, and its code uses simplified technical checks whose equivalence to a full Morning Star pattern is unclear.

Tags

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