Swing Trader for Beginners: Search for Trend Reversals (TA&FA)
Description:
The main idea of this AI Robot is to search for sharp reversals in the stock price after a strong short-term downtrend.
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 47, which ensures good diversification to reduce the impact of one trade on overall profitability.
Every day, the algorithm of this robot looks for moments of a sharp reversal in the stock price after a strong short-term downtrend. For analysis, stocks included in the SP 500 index are used, which allows our users not to be afraid of slippage when opening positions and be sure of good liquidity at the entry point. To be sure that the pivot point is indeed the beginning of a new trend, the robot uses a complex method of analyzing the market situation based on technical and fundamental analysis.
Since buying a stock after a sharp correction can be risky, the algorithm generates a buy signal only with the most favorable combination of technical indicators and fundamental data. If the analysis shows no evidence of a sustainable reversal, then the robot opens a short position and earns on the continuation of the downward impulse.
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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