Last week, our robots outperformed the major stock market indices by more than 3%.
Most robots performed better than the major indices. Firstly, I would like to highlight the Swing Trader ($4K per position): High Volatility Stocks for Active Trading (TA&FA), which earned a return of 3.87% in one week. Secondly, the Swing Trader ($4.5K per position): Downtrend Protection v.2 (TA) generated a profit of 2.34% over the week.
This AI robot is well-suited for traders who are interested in trading stocks with high volatility while aiming to minimize losses during downtrends. It achieves this by utilizing a range of technical indicators focused on identifying points of reversal in uptrends. This approach allows for a balance between short and long positions and helps prevent extended drawdowns.
The robot incorporates a basic risk management strategy designed for a trading balance of $100,000 and a position size of $4,000 per trade. However, traders have the flexibility to adjust their trading balance based on their specific requirements, with the position size adjusting proportionally. For instance, if the trading balance is changed to $50,000, the position size will automatically adjust to $2,000.
This robot is suitable for active traders who have the capacity to monitor 30-40 trades simultaneously. The average trade duration is one day, allowing users to efficiently utilize their capital and avoid prolonged exposure to any single trade.
In selecting stocks, the robot employs a proprietary method developed by our team of quantitative analysts to assess the strength and quality of momentum among the most active stocks in the US stock market. Additionally, a sophisticated algorithm, utilizing a pool of technical indicators processed using neural networks, determines entry points for positions.
Upon entering a trade, the AI robot sets a fixed "take profit" order at 3.5% of the opening price of the position. To exit a position, the robot utilizes two options: a fixed stop loss at 3% of the opening price and a flexible trailing stop that allows traders to capture a significant portion of their profits if the market reverses.
The robot's trading results are presented without employing margin. For a comprehensive view of trading statistics and the equity chart, users can click on the "show more" button on the robot's page. The "Open Trades" tab demonstrates how the AI robot selects equities, enters trades, and exits trades in a simulated environment. The "Closed Trades" tab provides an opportunity to review all past trades executed by the AI robot.
It is also worth highlighting MercadoLibre (MELI) stock, which generated a return of over 5% for our robots during the previous week. The stock was trading at $1280.21.
MELI in downward trend: price dove below 50-day moving average on May 30, 2023
MELI moved below its 50-day moving average on May 30, 2023 date and that indicates a change from an upward trend to a downward trend. In of 29 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 30, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MELI as a result. In of 98 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MELI turned negative on May 25, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MELI 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 demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MELI advanced for three days, in of 360 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 293 cases where MELI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MELI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued 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 (30.769) is normal, around the industry mean (18.894). P/E Ratio (102.041) is within average values for comparable stocks, (72.605). Projected Growth (PEG Ratio) (1.850) is also within normal values, averaging (2.605). Dividend Yield (0.000) settles around the average of (0.039) among similar stocks. P/S Ratio (5.688) is also within normal values, averaging (8.407).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a providesr of internet trading services
Industry InternetRetail
MELI and
Correlation & Price change
A.I.dvisor indicates that over the last year, MELI has been closely correlated with JMIA. These tickers have moved in lockstep 68% of the time. This A.I.-generated data suggests there is a high statistical probability that if MELI jumps, then JMIA could also see price increases.
| Ticker / NAME | Correlation To MELI | 1D Price Change % | ||
|---|---|---|---|---|
| MELI | 100% | -2.54% | ||
| JMIA - MELI | 68% Closely correlated | +0.73% | ||
| ETSY - MELI | 63% Loosely correlated | -3.55% | ||
| AMZN - MELI | 63% Loosely correlated | +1.29% | ||
| GLBE - MELI | 61% Loosely correlated | +4.38% | ||
| CHWY - MELI | 59% Loosely correlated | -0.98% | ||
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