Stock Screening with RSI, Market Capitalization, and Earnings Growth

Summary

This document describes a Chinese equity screen that combines a 14-period RSI below 65, market capitalization of at least 200 million, and earnings growth in 2021. It presents the screen as a way to join a technical condition with size and fundamental growth criteria. The article also offers example formula and Python implementations, though the code uses additional filters and data choices that do not fully match the stated screen.

The discussion flags several limitations: earnings growth alone can overlook valuation and other fundamentals, a single RSI threshold provides a narrow technical view, and a rule built on historical data may fail when market conditions change. It suggests evaluating stocks with multiple factors and considering market and industry trends. No backtest results or evidence of predictive performance are provided, so the screen is best understood as a rule proposal rather than a validated strategy.

Key ideas

• The screen selects equities with a 14-period RSI below 65 and market capitalization of at least 200 million.
• It also requires earnings growth for 2021, although the example code applies additional and somewhat different conditions.
• The article cautions that relying on one technical indicator or earnings growth alone can miss important risks.
• It recommends combining multiple factors with market and industry context.
• The document provides no performance results to establish that the screen is profitable.

Tags

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