Day Trader, Popular Stocks: Short Bias Strategy (TA&FA)
Description:
This AI Robot is for traders who prefer to trade popular stocks with good liquidity and low spreads and are focused on taking mostly short positions. This strategy uses a combination of several algorithms to search for upcoming uptrend reversal points, which makes it effective in situations of market instability.
To increase profitability and accuracy of opening and closing trades, the algorithm uses different approaches to long and short positions. After entering the long trade, the robot places a fixed order "Take profit" at the level of 4% and a fixed order "Stop Loss" at the level of 3% of the position opening price. Also, the robot places a flexible trailing stop, which allows the robot to keep most of the profit in case of a market reversal. After entering the long trade, the robot places a fixed orders "Take profit" at the level of 3% and "Stop Loss" at the level of 2% of the position opening price.
This robot is most suitable for active day traders who have enough time to track 50-60 trades at the same time. The average duration of a trade is 1-2 days, which allows our users to effectively use their capital and not get stuck in a trade for a long time.
To select stocks, the robot uses a new proprietary method developed by our team of quants to assess the strength and quality of the momentum of the most active stocks in the US stock market. Further, a complex algorithm consisting of a pool of technical indicators determines the entry points to the position. The algorithm pays special attention to the balance of short and long positions, which allows the robot to be resistant to changes in the main market trend.
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 02.19.2023.
Summary (365 days)
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