Swing Trader: Business Model (TA&FA)

This type of robot is for traders focused on search of stocks with good business models (to buy them) and stocks with poor business models (to sell them short).  The maximum number of open positions is limited to 30, and the average trade duration is 9 days, which makes it comfortable to follow the signals of the robot.

All 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. The robot analyzes the widest possible range of stocks (excluding penny stocks) without restrictions on industries or capitalization using a pool of 18 investment strategies based on both classic and modern approaches. These algorithms explore a vast set of fundamental data - liquidity, debt, profitability, liquidation value, etc., which makes it possible to evaluate every aspect of a company's activities and growth potential. Additionally, for a more accurate determination of when to open a position, the robot uses a pool of AI-optimized trend indicators.

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.

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.