Stock Screen Combining Turnover, Profit Growth, and RSI

Summary

This document presents a stock-selection rule that combines turnover, year-over-year growth in net profit attributable to parent-company shareholders, and the Relative Strength Index. It keeps stocks with turnover between 3% and 12%, profit growth above 20% and no higher than 100%, and RSI below 65. The article gives example screening logic in a platform-specific formula and Python, and describes sorting the resulting candidates by a capital-related field.

The stated rationale is to pair a profitability-growth condition with a measure of trading activity and an oscillator intended to select stocks with some price movement. The document does not report a backtest, sample, or return evidence, and its code examples do not establish that the filters were implemented consistently or tested for look-ahead bias. It notes that the rule omits other valuation and income measures, while RSI can lag and may reduce timeliness for short-term trading. The proposed additions, such as valuation measures and moving averages, are suggestions rather than evaluated improvements.

Key ideas

• The screen requires turnover between 3% and 12%, profit growth above 20% and at most 100%, and RSI below 65.
• The profit measure is year-over-year net income attributable to parent-company shareholders.
• The article supplies formula and Python illustrations but no backtest or return evidence.
• It warns that RSI may lag and that omitted fundamental measures could affect candidate selection.
• Adding valuation measures or trend indicators is suggested but not empirically assessed.

Tags

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