Small-Capitalization Stock Screen with Bollinger Position and Profitability Filters

Summary

This screening idea combines technical, size, and financial criteria for equities. Its final selection logic calls for at least six overlapping moving averages, a closing price between the Bollinger upper and middle bands, market capitalization below 10 billion yuan, no reported losses, and return on equity of at least 15%. The article’s opening description differs slightly, referring to five overlapping averages and omitting the ROE threshold, so the proposed criteria are not fully consistent throughout.

The post describes aligned moving averages as a trend filter and the Bollinger position as a way to identify shares trading at a relatively high level. The size and profitability conditions are intended to screen for smaller, financially sound firms. It discusses market, technical-analysis, and fundamental-analysis risks, and suggests additional averages, indicators, and review of financial statements and industry data. The included code is incomplete and does not clearly implement standard Bollinger Bands; no backtest, trading rules, or performance evidence is supplied. These limits make the screen an unvalidated set of selection conditions rather than an established strategy.

Key ideas

• The final stated screen uses at least six overlapping moving averages, though an earlier section says five.
• It selects closing prices between the Bollinger upper and middle bands.
• It adds a market-cap ceiling below 10 billion yuan, no losses, and ROE of at least 15%.
• The post combines technical and fundamental filters but gives no evidence of strategy performance.
• The criteria and code reference contain inconsistencies, limiting reproducibility.

Tags

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