Swing Trader, Long Only with Inverse: Valuation Model for Energy Sector (TA&FA)

Overview and Suitability: This AI-powered robot is designed for traders who prefer long-only positions in undervalued energy stocks while safeguarding against abrupt market declines using Inverse ETFs. With a maximum cap of 35 open positions and an average trading duration of 10 days, our robot simplifies the tracking process for users. Whether you're a seasoned trader or a novice, the straightforward signals make it easy to stay on top of your investments.

The algorithm driving this robot is rooted in the classic approach to company valuation pioneered by Benjamin Graham. Our machine learning algorithms meticulously analyze metrics such as earnings per share and book value to determine whether a company's stock price aligns with its fair value.

Strategic Features and Technical Basis: Each day, our robust mathematical engine scrutinizes thousands of stocks traded on the U.S. market, seeking undervalued energy stocks. Once an opportune stock is identified, the robot promptly generates a buy signal. Emphasizing a strategy of exclusively opening long positions, the robot employs two inverse ETFs, SRTY and FAZ, to hedge against market corrections.

SRTY, a bearish derivative of the Russell 2000 Index, and FAZ, a bearish representation of a diverse range of financial stocks, collaborate synergistically to identify the onset of substantial market corrections. This dual-ETF strategy enables the robot to accurately identify the initiation of large-scale market corrections and hedge a portfolio of long positions against potential drops in profits.

After opening a trade, the robot implements a trailing stop, leveraging a unique combination of technical indicators. This dynamic approach enables the robot to maximize profits by continuously monitoring changes in price dynamics, adapting to market shifts, and ensuring prudent risk management throughout the trade duration.

All orders placed by the robot are conveniently accessible on the "Pending Orders" tab. Here, users can access crucial information, including the number of shares in the order, the order placement time, the order type (limit, market, or stop market), and the limit price level. This unique tool enables our users to anticipate all future actions of the robot and effectively utilize its signals for both monitoring and real trading.

Ideal for Traders: The trading results of the robot are displayed without the use of margin. For comprehensive trading statistics and an equity chart, click on the "Show All Stats" button on the robot page. In the "Open Trades" tab, users can observe in real-time how the AI Robot selects equities, enters, and exits in paper trades. In the "Closed Trades" tab, users can review all previous trades executed by the AI Robot.

Trading Dynamics and Specifications:

• Maximum Open Positions: Low, maintaining focused and strategic trading rather than volume, which is suitable for managing high volatility with precision.
• Robot Volatility: Medium, offering a balanced approach between capturing significant market movements and mitigating sharp declines.
• Universe Diversification Score: Medium High, indicating a moderate array of instruments to hedge against sector-specific downturns and enhance profit opportunities.
• Profit to Dip Ratio (Profit/Drawdown): Medium, offering a balanced profit vs. drawdown scenario that makes it an ideal intermediates and experts.
• 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.