AI Trading Bot Generates 18.7% Return for SBUX with Long Bias Strategy
Automated trading bots have become increasingly popular in recent years, and for good reason. With the ability to process vast amounts of data and analyze market trends in real-time, these bots can execute trades faster and more accurately than any human trader. One such bot, the AI trading bot Swing Trader, has been making waves in the stock market with its long bias strategy.
Over the past 6 months, the Swing Trader, Popular Stocks: Long Bias Strategy (TA&FA) bot has generated an impressive 18.7% return for popular coffee chain Starbucks (SBUX).
Technical analysis involves studying past market data and price movements to identify patterns and trends that can predict future market behavior. The Swing Trader bot uses a combination of TA tools such as moving averages, trend lines, and momentum indicators to identify potential trading opportunities.
Fundamental analysis, on the other hand, involves studying a company's financial and economic data to assess its overall health and potential for growth. The Swing Trader bot uses a range of FA metrics such as revenue, earnings, and growth potential to evaluate whether a company is worth investing in.
By combining these two approaches, the Swing Trader bot is able to identify stocks that are likely to increase in value over time. Its long bias strategy means that it focuses on buying stocks that it believes will appreciate in value over the long term, rather than trying to make quick profits through short-term trades.
Overall, the Swing Trader bot's success with SBUX is a testament to the power of AI in trading. With its ability to process vast amounts of data and execute trades with lightning-fast speed, this bot is proving to be a valuable tool for traders looking to generate consistent returns in the stock market.
SBUX's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for SBUX moved out of overbought territory on September 13, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 instances where the indicator moved out of the overbought zone. In of the 33 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBUX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 69 cases where SBUX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 18, 2024. You may want to consider a long position or call options on SBUX as a result. In of 96 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for SBUX moved above the 200-day moving average on September 23, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SBUX advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
SBUX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 219 cases where SBUX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (5.809). P/E Ratio (27.308) is within average values for comparable stocks, (55.202). Projected Growth (PEG Ratio) (1.664) is also within normal values, averaging (1.769). Dividend Yield (0.023) settles around the average of (0.038) among similar stocks. P/S Ratio (3.048) is also within normal values, averaging (3.637).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. SBUX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SBUX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a producer of coffee and tea
Industry Restaurants