Trend Trader Pro, Long Only: Valuation & Profitability Model (FA)
Description:
This robot was created for traders who prefer to open only long positions using advanced systems of complex fundamental analysis. Due to its extended holding periods and limited simultaneous open trades, it caters to both novice traders and more advanced individuals independently managing their IRA accounts.
The algorithm of this robot is grounded in a fusion of three approaches:
1. Unique Fair Value Assessment Method:
This approach combines a time-tested technique developed by Benjamin Graham with modern algorithms. Our robust mathematical engine scans all stocks traded on the US stock market, meticulously selecting a pool of undervalued companies for the subsequent analysis.
2. Proprietary Comparative Analysis of Company Profitability:
Developed by our team of quants, this method assesses company profitability through a pool of indicators such as Total Revenue, Net Income, EBITDA, etc. The algorithm scrutinizes the dynamic changes in these indicators and assigns individual scores through a sophisticated ranking method. The top 30 companies with the best profitability indicators are then chosen for opening positions.
3. Profitability Analysis Inspired by Ian Wyatt:
This method delves into profitability metrics like Operating Income, EPS, etc., ranking stocks based on the maximum dynamics of growth in profitability indicators. The amalgamation of these methods enables the algorithm to select stocks exhibiting both stable average profitability indicators and high growth rates.
Upon initiating a trade, the robot automatically places a fixed Stop Loss order at 20% of the opening price. Additionally, at the start of each month, the algorithm reviews the rating for each stock. If it falls below the required level, the position is closed, irrespective of whether the Stop Loss level is reached.
For user convenience, all signals for opening positions are delivered two hours after the market opens. This ensures maximum liquidity and enhances the robot's usability for users following its signals.
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 01.09.2024.
Summary (39 days)
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