Swing Trader for Beginners: Business Quality Model for S&P 500 Stocks (TA&FA)

Overview: This robot is specially designed for novice traders interested in trading stocks of renowned companies from the S&P 500 index, employing a unique blend of fundamental methods to assess business quality and algorithms to recognize price trends. The Standard and Poor's 500, or simply the S&P 500, is a stock market index that tracks the stock performance of 500 of the largest companies listed on stock exchanges in the United States. It stands as one of the most widely monitored equity indices. Stocks within this index showcase high liquidity, low spreads, and low 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 15 companies for long positions and identifies the 15 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.

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: Low, indicating a narrow 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.