Small-Cap Profitability Screen with RSI and Afternoon Fund Flows

Summary

This proposed A-share screen combines a market-cap ceiling, positive net profit, an RSI threshold, and positive afternoon large-order net inflows. The intended rationale is to pair a basic profitability constraint with a price indicator and a measure of trading demand. The post notes that the selection may be narrow, overlook industry and company-specific conditions, and exclude larger firms that could also be attractive. It suggests adding sector-relative fundamentals and strengthening monitoring and capital management.

No historical test or returns are reported for the strategy. The accompanying examples contain apparent inconsistencies: the stated afternoon flow condition differs from some code-level flow filters, and the sample ranking and exclusions are not fully explained. The article also mentions other inputs without establishing how they fit into the final rule. As presented, this is a screening idea rather than a reproducible, validated trading system; the signal definitions, data timing, portfolio construction, and transaction costs would need to be specified before evaluation.

Key ideas

• The proposed screen requires positive earnings, a market-cap limit, RSI below its threshold, and positive afternoon large-order flows.
• The rationale combines a basic profitability check with technical and flow information.
• The author identifies sector differences and company-specific conditions as potential blind spots.
• Suggested refinements include sector-aware fundamentals, additional filters, and closer risk monitoring.
• The examples are not fully consistent, and the post reports no backtest or performance evidence.

Tags

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