Small-Cap Stocks Screened for Positive Large-Order Flow and No Losses

Summary

This stock-selection screen combines a market-cap ceiling with a large-order net-flow condition. It seeks companies valued below 10 billion yuan that have not reported a loss, and ranks candidates by net large-order flow after requiring that the flow remain above 0.05 for at least three consecutive days. The stated rationale is to focus on smaller companies with signs of buying pressure and positive financial results.

The document offers no backtest, performance data, or empirical support for the proposed thresholds. It also acknowledges that flow and market capitalization alone cannot capture factors such as broader market direction, industry prospects, or company valuation. It suggests adding valuation ratios and technical indicators, but does not define how to combine them or test whether they improve results. The screen is therefore a basic selection recipe rather than a validated trading strategy.

Key ideas

• The screen limits candidates to companies with market capitalization below 10 billion yuan and no losses.
• It requires large-order net flow above 0.05 for at least three consecutive days.
• Candidates are sorted by large-order net flow strength.
• The document provides no backtest or evidence that the screen predicts returns.
• It suggests adding valuation and technical measures, without specifying or evaluating those additions.

Tags

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