Stock Picker: Financial Integrity with Advanced Allocation (FA)

Overview and Suitability: The robot is a highly specialized AI-driven financial robot built exclusively on Fundamental Analysis (FA) principles. Its primary function is to execute trades using a combination of carefully weighted fundamental strategies, each of which is uniquely calibrated to contribute to overall trading outcomes. Designed for investors seeking a conservative yet strategic approach, this robot is particularly suitable for those focused on long-term market stability and sustainable growth. The robot's emphasis on financial health and fundamental strength makes it a perfect fit for those looking to minimize exposure to speculative risk and instead focus on fundamentally solid companies.

Strategic Features and Technical Basis: This robot operates on a multi-layered strategy platform, with each strategy addressing a different aspect of company evaluation through Fundamental Analysis. Below is a breakdown of the four core strategies that drive the robot’s decision-making process:

1. Harmonic Resonance of Profitability and Solidity

The first strategy works by evaluating the synergy between a company's earning power and its financial foundation. Think of this as a "harmonic resonance" between potential earnings and tangible assets. This approach identifies the sweet spot where a company’s potential profitability meets its financial reality, fusing these two dimensions into a cohesive analysis. It ensures that a company not only shows the ability to generate profits but also has a robust financial foundation to support its growth, making it a balanced choice for investment.

2. Rigorous Financial Screening: Leverage, Debt, and Liquidity

The second strategy applies a stringent fundamental filter, concentrating on three critical aspects of financial health: leverage, debt management, and liquidity. Companies passing this screen are evaluated based on:

• Low leverage, ensuring minimal debt burden.
• Sustainable debt levels, which indicate the company has enough assets to cover its liabilities.
• Strong liquidity, ensuring the company has the flexibility to manage short-term financial challenges. This strategy seeks out companies that are financially sound, able to withstand economic downturns, and possess the flexibility to reinvest in growth even during challenging times.

3. Identifying Undervalued Resilience

The third strategy works like a radar, detecting companies with financial discipline, resilience, and potential for market revaluation. This approach focuses on uncovering firms that are both financially strong and undervalued by the market, representing untapped opportunities. With more than 10 different factors monitored, the strategy ensures that these companies not only survive economic volatility but have the potential to thrive when the market re-evaluates their true worth. It’s a blend of prudence and opportunity, seeking resilient gems that are yet to shine.

4. Market Correction Hedge Using ETFs

The fourth strategy exclusively involves long positions but uses a unique hedging mechanism involving two inverse ETFs: SRTY and FAZ. SRTY is a bearish derivative of the Russell 2000 Index, while FAZ represents a bearish outlook on a diverse range of financial stocks. These ETFs work together to detect early signs of major market corrections, allowing the robot to hedge against potential losses in its long positions. By employing this dual-ETF strategy, the robot can anticipate and protect the portfolio from large-scale market downturns, ensuring consistent returns even during adverse market conditions.

Position and Risk Management: Regarding position management, the Trend Trader operates with strict, predefined guidelines to minimize risk and optimize returns.

• Maximum Open Trades: The robot is designed to handle up to 35 open trades at any given time, ensuring a diversified yet manageable portfolio.
• Stop-Loss Measures: An initial fixed stop loss of 10% is applied to each trade, offering a protective buffer against major losses. In addition, the system employs an adaptive trailing stop loss mechanism, which dynamically adjusts based on market movements, locking in profits while minimizing downside risk.
• Execution Timing: All trades are executed using market orders within 1-2 hours after the market opens. This timing ensures that the robot can capitalize on the day’s liquidity while securing favorable entry prices.

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: 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 able to tolerate and manage greater levels of risk in exchange for potentially higher returns.
• Optimal Market Condition: This robot shows its best performance when market volatility is high, making it particularly adept at navigating turbulent market phases.

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.