Small-Cap Stock Screen Using Recent 10% Gains and Profitability

Summary

This Chinese equity screen selects companies with a daily high-low range above 1%, market capitalization no greater than 10 billion, positive profits, and at least one daily gain of 10% or more during the previous 25 trading days. The note presents the criteria as a way to find smaller profitable firms that have shown sharp recent price strength. It includes sample indicator and Python-style implementations, then suggests adding volume, asset-value, MACD, and moving-average trend filters.

The document warns that a single large daily gain may be an unreliable signal, that recent momentum can crowd out fundamental and long-term analysis, and that market conditions can make fixed criteria stale. It does not provide a backtest, return statistics, or detailed definitions for all inputs. Its examples also vary: the written range threshold is expressed as a percentage, while the formula uses a prior-close denominator, and the prose alternates between no losses and recent positive quarterly profits. These details require clarification before implementation.

Key ideas

• The screen requires a range above 1%, market capitalization within the stated cap, and positive profits.
• At least one daily gain of 10% or more must occur within the previous 25 sessions.
• Suggested refinements add volume, asset-value, momentum, and trend measures.
• The note gives no performance test and contains differing descriptions of profitability and range calculations.

Tags

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