Trend Trader for Penny Stocks ($2.5K per position): Comprehensive Intrinsic Sentinel (FA)

Overview and Suitability: The robot assesses undervalued stocks by evaluating their intrinsic value in contrast to the market price. Penny stocks, often priced below $5, represent smaller companies that may face limited resources and high volatility. While a few trades on major exchanges like the NYSE, most are found in over-the-counter markets (OTC), offering easier access but with less regulatory oversight. These stocks, despite their potential for high returns, carry significant risk, including possible total loss, particularly when using margin. Proper risk management, such as employing stop-loss orders, is essential. Experts or Hedge funds must be mindful of factors like low liquidity and rapid price changes. Signals from this robot can be used as hints for option traders, offering valuable insights while navigating such volatile investments.

Strategic Features and Technical Basis: The foundation of this trading robot lies in its sophisticated intersection of various analytical frameworks, referred to as Rankings. These include the Piotroski Ranking, Debt Ranking, Gain Ranking, NCAV Ranking, and Greenblatt Ranking. Each Ranking employs a distinct set of criteria to evaluate different aspects of a company's financial health and market position.

Piotroski Ranking:

• Financial Health Assessment: Combines multiple financial criteria into a single score ranging from 0 to 9, with higher scores indicating stronger financial health.
• Predictive Accuracy: Aids in predicting future stock performance based on current financial robustness.

Debt Ranking:

• Creditworthiness Evaluation: Focuses on identifying companies with sound credit profiles and manageable debt levels.

Gain Ranking:

• Growth Potential: Emphasizes companies demonstrating active and healthy growth trajectories.

NCAV Ranking:

• Deep Value Investing: Targets stocks trading at a significant discount to their intrinsic value, often overlooked and underpriced.
• Market Inefficiencies: Exploits temporary market inefficiencies and investor pessimism.
• Quantitative Analysis: Utilizes rigorous quantitative metrics such as price-to-book ratio and net current asset value (NCAV).
• Margin of Safety: Prioritizes a margin of safety to minimize the risk of permanent capital loss.
• Short-Term Gains: Aims for short-term gains by selling stocks once their prices recover to intrinsic value.
• Risk and Reward: Balances high return potential with higher risk, requiring thorough analysis.

Greenblatt Ranking:

• Magic Formula: Based on Joel Greenblatt's methodology, focusing on Return on Capital (ROC) and Earnings Yield to identify high-quality, undervalued companies.

Position and Risk Management:

• Max Open Trades: The robot is configured to handle up to 35 open trades simultaneously.
• Fixed Stop Loss: A fixed stop loss of 25% is applied to manage risk effectively.
• Trade Execution: Stocks with the highest scores are selected for long positions. Trades are executed using market orders within 1-2 hours after market opening to ensure optimal liquidity and favorable entry prices.

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: High, indicating a broad 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.