Small-Cap Profitable Stocks Below the Upper Bollinger Band

Summary

This post describes an A-share stock screen that combines daily price range, market capitalization, profitability, Bollinger-band position, and relative valuation. It filters for stocks with amplitude of at least one percent, positive market capitalization up to 10 billion yuan, positive net profit, and a close between the middle and upper Bollinger bands. The final written rule also requires the price-to-earnings ratio to be no higher than the industry average. Formula and Python examples are included, though the stated band conditions and the code’s band ordering should be checked for consistency before implementation.

The author presents the screen as a way to find smaller profitable companies that have pulled back within an upward price range, while avoiding relatively expensive stocks. The post cautions that Bollinger bands can be overused and cannot guarantee future performance; it recommends combining signals, diversifying, and controlling position risk. No backtest, holding period, benchmark, or evidence for the screen’s claimed rationale is supplied, and the market-cap units and data-field assumptions require platform-specific verification.

Key ideas

• The screen combines a one-percent amplitude threshold with a positive market capitalization capped at 10 billion yuan.
• It filters for profitable firms whose closing price lies between Bollinger bands and whose valuation is below the industry average.
• The post includes implementation examples whose Bollinger-band ordering should be verified.
• The author warns that Bollinger signals are limited and suggests broader screening and risk controls.
• No performance evidence or holding period is provided.

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