Swing Trader, Long Only: Valuation & Profitability Model (FA)

This AI Robot is for traders who prefer to open long only positions and trade stocks of undervalued companies with strong profitability ratios. The maximum number of simultaneously open positions is limited to 35 and the average trading duration is 9 days, which makes following the signals of this robot simple and affordable for beginner traders.

The robot algorithm is based on the classic approach to company valuation developed by Benjamin Graham. Only companies with quarterly revenues of at least 100 million were selected for analysis. After assessing the fair value of the business, the algorithm performs the second stage of analysis based on a unique methodology for confirming the profitability of the company, developed by our team of quants.

Every day, our mathematical power analyzes thousands of stocks traded on the US market and looks for undervalued stocks of companies with high profitability ratios. As soon as a suitable stock is found, the robot generates a buy signal. The robot opens only long positions, as our backtests have shown that stocks correctly selected using fundamental analysis demonstrate high stability even during a downtrend. After opening a trade, the robot places a fixed stop of 10% of the entry price of the position to prevent large losses in the event of a sharp change in market conditions. An exit signal appears either when the algorithm considers that the company's stock no longer meets the requirements of the model, or when the price falls to the stop-loss level.

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 02.14.2023.