Trend Trader for Beginners: F-score Model (FA)

Overview and Suitability: This robot is tailor-made for novice traders who prefer engaging in long-term trends, relying on signals derived from advanced fundamental analysis models. Its emphasis on maintaining a small number of simultaneously open trades and holding positions for an extended period makes it an excellent choice for those new to trading.

At the core of the algorithm lies the well-established and time-tested method for evaluating a company's financial strength—the Piotroski F-score. Originating from the insights of Stanford University professor Joseph Piotroski, this score is widely embraced by professional hedge funds and value investors. The score assesses crucial financial indicators such as Return on Assets, Operating Cash Flow, and Asset Turnover Ratio. Following data processing, each company receives a score ranging from 0 to 9, where 0 signifies a weak financial position suitable for opening short positions, and 9 represents excellence, making them prime candidates for long positions.

However, our team of quants has not merely mechanically applied this method; they have enriched it with their own indicators, blending both classical and modern methods of cost analysis. The outcome is a comprehensive and effective company assessment algorithm.

Position and Risk Management: On a daily basis, our mathematical prowess scans companies' financial statements, selecting those with the most favorable aggregate scores for long positions and the lowest scores for short positions. There are two exit strategies:

1. In the event of a significant change in the company's score.
2. When the stock price reaches 20% of the fixed stop-loss level from the trade's opening price.

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: Medium, allowing for diversified exposure while managing concentration risk.
• 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.