Small-Cap Stock Screening with Fund Flows and Triple Golden Crosses
Summary
This Chinese stock-screening note combines three filters: market capitalization below 10 billion yuan, no past losses, and simultaneous golden-cross signals from three technical indicators. MACD, KDJ, and RSI are given as examples. It then ranks qualifying stocks by capital-flow strength, using measures such as northbound investment or margin financing flows.
The note explains the rationale as combining investor flows, technical signals, and a size and profitability screen. It also warns that the approach leaves out other company and industry considerations and may miss useful signals by relying on only three indicators. Suggested refinements include adding indicators and fundamental or industry factors. The stated final logic mentions financial condition and industry outlook, though it does not define how to measure them or provide backtest results. The accompanying code excerpt is incomplete, so the method is presented mainly as a screening concept rather than a reproducible implementation.
Key ideas
- Rank stocks by the strength of measured capital inflows.
- Require three technical indicators, such as MACD, KDJ, and RSI, to show golden crosses together.
- Restrict the screen to companies below the stated market-cap limit with no past losses.
- The note identifies missing company and industry analysis as a limitation and suggests adding those factors.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.