Small-Cap Profitable Stock Screening with an RSI Ceiling

Summary

This Chinese stock-screening post proposes combining a relative strength index (RSI) threshold with company quality, profitability, and a market-cap limit. Its stated selection rules seek stocks with RSI below 65, positive earnings, and market capitalization below 10 billion yuan; company quality is left to the user to assess. The post also gives an example RSI lookback of 14 periods and mentions filtering for listed companies with a sufficiently long trading history.

The rationale is to combine a technical condition with basic business and size filters. The author notes that the screen omits other financial measures, including valuation ratios and earnings growth, and may exclude strong businesses whose market values exceed the cap. No performance data or backtest results are supplied, so the strategy's effectiveness is not established. The example code and conditions also differ in some details, and the company-quality rule is not operationally defined; those points would need to be resolved before implementation.

Key ideas

• The screen combines RSI below 65 with positive earnings and a market-cap ceiling.
• The post leaves its company-quality criterion undefined and dependent on user judgment.
• The author suggests adding valuation and earnings-growth measures to broaden the fundamental analysis.
• No results are reported to show how the screening rules perform.

Tags

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