Day Trader: Trend Seeking Bot for Medium Volatility Stocks ($6.5K per position) (TA)

Overview and Suitability: This robot for Medium Volatility is specifically designed for beginner traders who are looking to capitalize on market fluctuations. This robot enters trades when there is a spike in market volatility during an upward phase, targeting pullbacks for optimal entry points. For a trade to be initiated, the market must experience a volatility surge of 8% or more. Profits are taken at a target of 3%, and all trades are executed at market opening. The stop loss is strategically set between 2-10% per trade, maintaining a win rate of over 70%. The bot only trades long positions, simplifying the trading process for beginners. Although drawdowns can reach up to 25%, positions typically recover swiftly, providing a balance of risk and reward.

Strategic Features and Technical Basis:

• Medium Volatility: The robot is optimized to exploit significant spikes in market volatility, which are common in moderately volatile markets.
• Trend Seeking: Trading decisions are based on Trend Seeking analysis, which involves studying past price movements to predict future behavior.

Position and Risk Management:

• Average Holding Period: Each trade is held for an average of 1 day, allowing for quick turnover and frequent trading opportunities.
• Trading Dynamics and Specifications:
  • Ideal for Traders: This bot is perfect for day traders who seek to profit from short-term market movements.
  • Asset Class: The robot is optimized for trading penny stocks, which are known for their medium volatility and potential for significant price movements.

Please note that all trading involves risk, and it is possible to lose money. Ensure you fully understand the risks involved and seek independent advice if necessary.

Trading Dynamics and Specifications:

• Maximum Open Positions: Medium, allowing for diversified exposure while managing concentration risk.
• Robot Volatility: Medium, offering a balanced approach between capturing significant market movements and mitigating sharp declines.
• Universe Diversification Score: High, indicating a broad array of instruments to hedge against sector-specific downturns and enhance profit opportunities.
• Profit to Dip Ratio (Profit/Drawdown): Medium, offering a balanced profit vs. drawdown scenario that makes it an ideal intermediate and experts.
• Optimal Market Condition Medium: If the current market volatility is Medium then you should use the Best Robots in Medium Volatility Market (VIX is Medium - this indicator is coming soon).  

Disclaimer:  Disclaimers and Limitations 

Simulated Performance: All simulated performance results are derived solely from real-time calculations using historical data. Algorithms receive minute-by-minute historical prices and other data from Morningstar and generate trades in real time based on these historical inputs, effectively eliminating any hindsight bias. 

Actual Performance: All actual performance results are derived solely from real-time calculations using current data. Algorithms receive minute-by-minute current prices and other data from Morningstar and generate trades in real time based on these current inputs, effectively eliminating any hindsight bias. 

Gross Performance: Gross performance results do not deduct any fees or expenses. These results reflect the total returns generated by the AI Robots without considering the costs associated with accessing the service. 

Net Performance (current performance chart): Net performance results deduct fees to provide a more accurate representation of returns experienced by the user. These deductions can include: Model Fee Deduction: Net performance results may deduct a model fee equivalent to the highest subscription fee charged to the intended audience. Actual Subscription Fees: Net performance results may also deduct the actual subscription fees paid by the user for access to AI Robots.