Swing Trader for Beginners: Business Quality Model for NASDAQ 100 Stocks (TA&FA)
Description:
This robot is specially designed for novice traders interested in trading stocks of high-tech companies from the NASDAQ 100 index, employing a unique blend of fundamental methods to assess business quality and algorithms to recognize price trends. The Nasdaq-100 is a stock market index comprising 101 equity securities issued by the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. Stocks in this index exhibit high liquidity, low spreads, and moderate volatility, making them an ideal choice for novice traders.
The robot's algorithm is underpinned by two distinct models:
Business Quality Assessment Model:
Developed by our team of quants, this model employs a blend of classical and contemporary approaches. Through in-depth quantitative analysis of key metrics such as Debt to Assets, EBITDA, and interest coverage, the algorithm assesses the business quality of each NASDAQ 100 stock. It strategically selects the top 10 companies for long positions and identifies the 10 worst companies for short positions.
Price Trend Recognition Model:
This model utilizes a distinctive combination of technical indicators, finely tuned via a comprehensive system of multi-level backtests and forward tests. The algorithm pinpoints the most optimal entry points into trades for stocks selected based on fundamental indicators.
Upon initiating a trade, the robot implements a trailing stop based on a sophisticated combination of technical indicators optimized through machine learning algorithms. Additionally, a fixed "Take Profit" order is placed at two percent of the position's opening price. This strategic combination empowers our users to effectively secure profits and steer clear of prolonged periods of drawdowns.
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.
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.
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 12.15.2023.
Summary (28 days)
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