Swing Trader for Beginners: Trading in Markets Trending Down (TA&FA)
Description:
The focus of this AI Robot is to search for short-term downtrends with high volatility and predict their further movement.
This AI Robot is most suitable for beginner traders as its signals are very easy to follow. All new trades are opened at 9:40 ET, i.e., 10 minutes after the market opens. After entering the position, a fixed stop loss and a take profit of 3% of the current stock price are set. Thus, it is enough for our users to wait until 9:40 ET, see if new signals have appeared, open trades, place closing orders and be free until the next trading session.
The average duration of a trade is only 2 days, which allows our users not to stuck in one position for a long time and effectively use capital. The maximum number of open trades is limited to 30, thanks to which control over positions does not take much time.
For analysis, the algorithm uses only stocks from the SP 500 index, which allows traders not to have problems with the spread or liquidity at the time of opening a trade. Every time one of the stocks forms a short-term downtrend, the robot conducts a comprehensive analysis of the situation using both technical and fundamental analysis methods.
If the result of the analysis shows that this downtrend is nothing more than a short-term pullback from the uptrend and the company has good prospects for business growth, then a signal to open a long position is generated. If the fundamental indicators are bad and the technical analysis shows an increase in the downward trend, then a signal is generated to open a short position.
The analysis is based on the BUY / SELL Analytical System - a complex method for assessing the market situation, consisting of the following blocks:
1. Technical Analysis (TA) score - signals from several technical indicators (MACD, RSI, Stochastic, etc.) are processed using neural networks.
2. Fundamental Analysis (FA) score - complex fundamental analysis based on quantitative comparative ratings (Valuation, P/E Growth, SMR etc.)
3. Buy / Sell rating system - processes the aggregate score results and generates a trading signal.
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 12.12.2022.
Summary (365 days)
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