Swing Trader: Graham Value Optimizer (FA)
Description:
Overview and Suitability: The primary objective of the Swing Trader: Graham Value Optimizer is to leverage fundamental analysis to identify stocks trading below their intrinsic value, a principle rooted in “Value” investing. This approach is based on the time-tested strategies of Benjamin Graham, aiming to uncover investment opportunities where the market price of a stock does not reflect its true value. The robot is particularly suitable for intermediate investors who have a foundational understanding of stock markets and seek to enhance their portfolio with undervalued stocks showing potential for significant returns.
Strategic Features and Technical Basis:
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Intrinsic Value Calculation: The core mechanism of the robot involves a rigorous analysis of intrinsic value. By evaluating the book value and earnings metrics, it identifies stocks priced below their inherent worth, offering a margin of safety for investments.
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Financial Health Assessment: To ensure the robustness of the selected stocks, the robot screens for companies demonstrating strong financial health. It looks for indicators such as substantial revenue streams, positive earnings history, and overall financial stability.
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Valuation Metrics: A key aspect of the strategy involves targeting stocks with favorable price-to-book ratios and promising future return potentials. This helps in identifying investments that are not only undervalued but also have a solid growth trajectory.
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Exclusion of High-Risk Stocks: To mitigate risk, the Graham Value Optimizer excludes penny stocks and over-the-counter (OTC) stocks from its selection process. This focus on quality ensures that only reliable and sustainable investment opportunities are considered.
The robot's advanced algorithmic approach, combining these strategic features, provides a diversified and robust investment portfolio aligned with value investing principles.
Position and Risk Management:
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Trade Limits and Risk Parameters: The robot is configured to manage a maximum of 35 open trades simultaneously, ensuring a balanced and manageable portfolio. Each trade is safeguarded with a fixed stop loss set at 7.5%, which helps in mitigating potential losses and protecting the investor's capital.
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Trading Schedule: The robot enters trades 330 minutes after the market opens and exits trades after 230 minutes. This timing strategy is designed to optimize entry and exit points, taking advantage of intraday price movements while reducing exposure to market volatility.
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Weekly Analysis: The analysis process is conducted at the beginning of each week, ensuring that the trading decisions are based on the most current and relevant financial data.
By integrating these position and risk management strategies, the Swing Trader: Graham Value Optimizer offers a disciplined and systematic approach to investing, aimed at achieving sustainable long-term growth with minimized risks.
Trading Dynamics and Specifications:
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Maximum Open Positions: High, enabling the robot to diversify across numerous trades and reduce risk through market exposure.
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Robot Volatility: Medium, offering a balanced approach between capturing significant market movements and mitigating sharp declines.
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Universe Diversification Score: Medium High, indicating a moderate array of instruments to hedge against sector-specific downturns and enhance profit opportunities.
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Profit to Dip Ratio (Profit/Drawdown): Medium, offering a balanced profit vs. drawdown scenario that makes it an ideal intermediates and experts.
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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.
Actual Performance (365 days)
Simulated Performance
This Robot is recommended to be used when the markets are growing in general. The core algorithm makes only long The core algorithm makes only long
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