Swing Trader: Valuation Model (FA)

This type of robot is for traders focused on search of undervalued stocks (to buy them) and overvalued stocks (to sell them short). The maximum number of open positions is limited to 30, and the average trade duration is 6 days, which makes it comfortable to follow the signals of the robot.

New trades are opened only on Mondays one hour before the market closes during the period of maximum liquidity. Thanks to this, our users do not need to constantly monitor the moments of the occurrence of signals, which is very convenient. 

Stock Picking Strategy:
1. Every week, our AI algorithms look for stocks to open positions (excluding penny stocks) using a combination of several fundamental analysis methods. We use both classic company valuation approaches developed by Benjamin Graham and Warren Buffett and more modern ones created by our team of quants.
2. After a suitable stock is found, our algorithms set the stop loss at -3%.  To do this, we use data on current volatility and the direction of medium-term and short-term trends. Each stock has its own unique stop loss level, which allows the AI Robot to respond as accurately as possible to changes in market dynamics.
3. Every week, each position is evaluated both in terms of changing the fundamental data of a company and the direction of the trend of the stock price. If the dynamics are positive, then the robot increases the open position for higher profits.
This type of robot is most suitable for medium-term traders focused on a calm trading style with a moderate level of risk. This robot also uses a hedging mechanism, opening both long and short positions, which allows it to be resistant to changes in market dynamics.
The robot's trading results are shown without using a margin. For a full trading statistics and equity chart, click on the "show more" button on the robot page. In the tab “Open Trades”, a user can see live how the AI Robot selects equities, enters, and exits in paper trades. In the tab “Closed trades”, a user can review all previous trades made by the AI Robot.

Disclaimer. The presented paper traded results (annualized returns, % wins/loss, and other statistics) are achieved by the application of the backtested and forward tested models. The past backtested and forward tested performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance. Forward testing started on 11.29.2022.