Auto-Trader: Day (40%), Swing (30%), Short (30%) Dip Searcher in Top Volatile Giants, long/short (TA)

The trading system is designed with a balanced approach, incorporating a robot that specializes exclusively in short positions to ensure diverse strategy coverage. The allocation consists of a Day Trader (40%), a Swing Trader (30%), and a Short (30%) strategy, with a focus on high-volatility stocks. The short-specific models utilize technical analysis (TA) to capitalize on downward price movements, while dip strategies aim to optimize entries and exit in market leaders experiencing significant price swings. This integrated system enhances overall performance by diversifying risk and targeting both upward and downward market trends.

Day Trader: Dip Buying Tactics in High Volatility Stocks and Long Only (TA)

Overview and Suitability: This robot is meticulously crafted for beginner traders who are interested in trading medium and high-liquidity stocks. This robot is ideal for those who prefer a less frequent trading approach, averaging around 15 trades over a given period. It focuses exclusively on Technical Analysis (TA) to identify trading opportunities, making it suitable for beginners who may not yet be proficient in interpreting fundamental data.

This robot initiates trades following significant volatility surges, specifically when there is an increase of 8% or more. It capitalizes on market corrections or dips that occur after these volatility spikes, entering positions with the expectation that the market will reverse direction. The robot aims for a take profit at approximately 4%, and employs a medium stop loss to safeguard against potential losses, ensuring a balanced risk-reward ratio.

The robot's flexibility allows it to open trades at any time during the trading day, choosing optimal entry points based on real-time market conditions. With a win rate exceeding 70%, this strategy is reliable and attractive for beginners, focusing solely on long positions to simplify the trading process and reduce the complexities and risks associated with short selling. Although drawdowns can reach up to 25%, the robot is designed to recover quickly, minimizing losses and enhancing profitability.

Strategic Features and Technical Basis

• High Volatility: The core of this strategy is to leverage high volatility scenarios, specifically when the market experiences spikes of 8% or more. This ensures that trades are executed only during optimal market conditions, enhancing the potential for profit.
• Dip Buying: The robot opens trades during market dips, effectively taking advantage of temporary declines. By selecting the most optimal channels for trade execution, the robot makes the most out of market fluctuations.
• Medium Stop Loss: A key feature of this robot is its medium stop loss mechanism, which ranges from 2% to 15% per trade. This stop-loss strategy is crucial for managing and limiting potential losses while protecting gains.

The robot's technical foundation is built exclusively on Technical Analysis (TA), focusing on patterns, trends, and other market indicators to determine entry and exit points. This ensures that the strategy remains straightforward and accessible to beginner traders.

Swing Trader: Search for Dips in Top 10 Giants (TA)

Overview and Suitability: The AI Robot is a meticulously crafted tool tailored for traders of all experience levels, aiming to engage with the largest and most influential companies within the S&P 500. By focusing on the top 10 companies by market capitalization, this robot offers a robust trading strategy that leverages the stability and market-moving potential of these industry leaders. Imagine navigating a ship through the most reliable currents; this robot provides a smoother journey in the financial waters by operating through the Alpaca brokerage platform. It embodies a strategy that is less volatile than the broader market, making it ideal for those seeking exposure to large-cap stocks with a long-only trading approach.

Strategic Features and Technical Basis: The AI Robot identifies optimal trading opportunities during significant market pullbacks. Think of it as a seasoned fisherman casting nets only when the tide is just right. The robot is programmed to execute trades several minutes before market close, leveraging the mean-reversal nature of the stock market to optimize entry points. This strategy ensures trades are initiated only after a market dip followed by a recovery indication, maximizing the likelihood of capturing effective upswings.

Position and Risk Management:

Open Positions Strategy:
The robot manages a low number of open positions (maximum 10) to maintain focused and strategic trading. Picture a master chess player who moves only a few pieces at a time, each with a precise purpose, ensuring control over the game.

Risk Management Tools:
Instead of a fixed take profit, the robot exits positions based on favorable movements to the upside, utilizing the stock market’s tendency for mean reversion to optimize exit timing and secure profits. It's akin to a skilled surfer who rides the wave just long enough to reach the shore safely, ensuring maximum enjoyment and minimal risk.

The AI Robot is an excellent choice for traders across all experience levels seeking to engage with the stock market through a disciplined, fundamentally oriented trading approach. Its strategic entry and exit points make it accessible for beginners while offering the depth required by more experienced traders.

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.