Swing Trader for Beginners: Trading in Markets Trending Up (TA&FA)

Overview and Suitability: The idea of this AI Robot is to search for short-term uptrends 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.

Position and Risk Management: The average duration of a trade is only 2 days, which allows our users not to stuck in one transaction for a long time and effectively use capital. The maximum number of open trades is limited to 31, 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 the price of one of these stocks shows a fast, stable short-term uptrend, the AI algorithm of the robot begins to analyze the situation in terms of technical and fundamental analysis methods.

 If the result of the analysis shows that the growth of the share price is stable and there are no signs of overbought, and the company has good prospects for business growth, then a signal is generated to open a long position. If the fundamental indicators are bad, and the technical analysis shows either signs of overbought, or what is nothing more than a short-term surge in the interest of traders, then a signal is generated to open a short position.

Strategic Features and Technical Basis: 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.

Ideal for Traders: 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.

Trading Dynamics and Specifications:

• Maximum Open Positions: Medium, allowing for diversified exposure while managing concentration risk.
• Robot Volatility: Medium, offering a balanced approach between capturing significant market movements and mitigating sharp declines.
• Universe Diversification Score: High, indicating a broad array of instruments to hedge against sector-specific downturns and enhance profit opportunities.
• Profit to Dip Ratio (Profit/Drawdown): Low, offering a low profit vs. drawdown ratio that makes it usable for experts when the risks are high.
• Optimal Market Condition Medium: If the current market volatility is Medium then you should use the Best Robots in Medium Volatility Market (VIX is Medium - this indicator is coming soon).  

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.