Trend Trader for RUSELL 2000 ($2.5K per position): Dynamic Growth & Stability Chaser (FA)

Overview and Suitability: The robot is specifically tailored for Experts or Hedge funds that emphasize a thorough, data-driven strategy when pursuing value investments. Additionally, the signals from this robot can be used as hints for option traders, helping them navigate the market. This automated system concentrates on uncovering undervalued firms within the RUSSELL 2000 index by scrutinizing their financials. The core objective is to pinpoint companies whose actual worth surpasses their market price, aligning with the tenets of value investing. This method offers a strategic approach for investors aiming to secure both growth and stability in a rapidly evolving market.

Strategic Features and Technical Basis:

Combination of Rankings: The robot's strategy revolves around the intersection of two specialized algorithms: the Debt Ranking and the Gain Ranking. Each Ranking serves a distinct purpose:

• Debt Ranking: This module identifies and sorts companies with strong financial health and solid creditworthiness. It assesses a company's balance sheet and financial stability, ensuring that only those with sound financials are considered for further analysis. This aspect helps in minimizing risks associated with high-debt firms, providing a safety net for the investments.
• Gain Ranking: Focusing on growth metrics, the Gain Ranking identifies and sorts companies exhibiting robust and sustained profitability. It emphasizes selecting firms with healthy growth trajectories, which are crucial for achieving long-term capital appreciation. This Ranking ensures that the selected stocks are not only financially stable but also have significant growth potential.

Stock Selection Process: The trading robot operates within the universe of the RUSSELL 2000 index. It initially screens for the best companies using the Debt Ranking algorithm. Stocks that pass this initial filter are then evaluated by the Gain Ranking. The final selection comprises stocks that meet the stringent criteria of both algorithms, ensuring a balanced blend of stability and growth.

Detailed descriptions of the individual Ranking algorithms can be found in their standalone products:

• Debt Ranking: Described as "Trend Trader Pro: Company's Financial Health Model (FA) bot trading Stocks" at Tickeron.
• Gain Ranking: Described as "Trend Trader, Long Only: Profitability Model for Mid-Cap Stocks (FA) bot trading Stocks" at Tickeron.

Position and Risk Management: 

Maximum Open Trades and Stop Loss: The robot maintains a disciplined approach to position and risk management. It is configured to hold a maximum of 35 open trades at any given time. This limitation prevents overexposure to market volatility and ensures that each position is adequately managed.

To safeguard against significant losses, a fixed stop-loss threshold of 25% is applied to each position. This mechanism protects the portfolio from extreme downside risks, preserving capital in turbulent market conditions.

Trade Execution and Ranking: Stocks that are ranked highest based on their scores from the intersection of Debt Ranking and Gain Ranking are selected for initiating long positions. Trades are executed using market orders, typically within 1-2 hours after the market opens. This timing is chosen to capitalize on optimal liquidity and secure favorable entry prices, enhancing the potential for profitable trades.

Trading Dynamics and Specifications:

• Maximum Open Positions: Medium, allowing for diversified exposure while managing concentration risk.
• Robot Volatility: High, suited for navigating and capitalizing on market swings.
• 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): High, suitable for traders who are focusing either on high profit or low drawdown for potentially higher returns that makes it an ideal for all levels.
• 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.