New live internal feed now available on StockDomo.com, a place for Automated Stock Trading Ideas and Research

A new live internal data feed is now available on StockDomo.com, the place for Automated Stock Trading Ideas and Research.

According to the post on StockDomo.com:

Need some stock trading ideas or research? StockDomo.com provides great Stock Trading ideas and research to inspire your trading decisions, using automated methods.

There are a number of Buy Strategies such as buying a stock when it goes above the 52 Week High on above average volume, and more may be added. Even Artificial Intelligent methods can be used to select stock trading ideas.

Each trading day, the website will post new Buy Signals for each Buy Strategy and be available at around 8:00 pm Pacific Time.

The StockDomo.com site will keep track of performance of previous days buy signals.

The tracking will simulate sales of the stock investments at around the 60th day.

 

Data Feed and AI Trader Bot Frozen on April 28, 2017. Data feeds are not cheap.

The Data feed has been frozen on April 28, 2017. The AI Trader Bot, which relies on this incoming data, will not be evaluating decisions based on new data.

Good, and cheap, reliable Data feeds are not cheap. If you know ways to get good, cheap, reliable data, automatically, feel free to let me know.

The AI Trader Bot evaluation process with new data could still be revived if it is worth the time and money.

 

First six months of 2016: AI Trader Bot 10 Day Optimized Beats S&P 500 by almost 3%! An accomplishment.

3D image concept of software (Robot Trading System) used in the stock market that automatically submits trades to an exchange without any human interventions. A robot hand counting money in graph form on the rise. Depth of field with focus on the gold coin on the fingers.

Over the last six months (December 22, 2015 to June 24, 2016), I’ve used my own real money to swing trade the SPY Exchange Traded Fund (mimics the S&P 500 Index) using the Buy Signals of the AI Trader Bot 10 Day Optimized, which I created:

AITraderBot.com

I’m glad to say that the AITraderBot (Artificial Intelligent Swing Trader Bot powered by Machine Learning) 10 Day Optimized Portfolio outperformed the S&P 500 by almost 3% over the first six months, from December 22, 2015 to June 24, 2016.

This is an important accomplishment because most actively managed mutual funds and hedge funds do not beat the S&P 500 and the AITraderBot 10 Day Optimized beat it by almost 3% over the last six months, the first six months the AITraderBot has been active.

The Market has also been challenging, and it has been going up and down with no apparent trend, yet the AITraderBot.com 10 Day Optimized system outperformed a volatile sideways market.

AI Trader Bot 10 Day Optimized 6 Months Performance 2016
AI Trader Bot 10 Day Optimized 6 Months Performance 2016

Some who are worried about me think that trading and swing trading can be dangerous. I’m happy to say I’m not broke using the AITraderBot.com Artificial Intelligent Swing Trader system.

How I used the AI Trader Bot 10 Day Optimized System:

I have a special brokerage account with my own real money. Each night (after 8 pm PST, or 11 pm EST), the AITraderBot.com system evaluates a buy signal based on a 5 Day, 10 Day, 20 Day, and 30 Day Optimized Portfolio. Each Portfolio’s Buy Signal is determined separately.

If there is a Buy Signal, then the user would buy SPY ETF at the market open price the next day.

There is an arbitrary sell rule which I created:

  1. If the position drops 2%, then sell the entire position for a loss.
  2. If the position gains 6%, then sell the entire position for a gain.
  3. Hold the position for the Optimized Number of days. For example, if using the AITraderBot.com 10 Day Optimized, try holding position for 10 trading days. Do not include weekends and trading holidays.
  4. Sell at the closing market price on the last holding day.

The Future:

The future is unknown, but I am confident that the AITraderBot.com will perform well (with the AITraderBot 10 Day Optimized Performing best?), and I am using my own real money to trade the AITraderBot.com Buy Signals showing you how confident I am in the artificial intelligent swing trading system I created.

Major Dome equals Major Stock Market Drop. Target 1600 on S&P 500, another 15% down.

If you look at the S&P 500 Stock chart, we see a very large Major Dome. Dome patterns are often a topping pattern, and the larger the dome, the larger the drop.

February11_2016_Annotate

We see the large dome start from around 2014 all the way up to February, 2016.

Based on the height and magnitude of the dome, we (human opinion) expect a downside target of around 1600 on the S&P 500, for another drop of 13%, sometime in 2017.

Not all Bear markets go straight down, so there may be short and violent tradable rallies, but we are likely to hit 1600 on S&P 500 by sometime in 2017.

US Stock Market to break down soon, or bounce first, then breakdown.

The U.S. S&P 500 Stock Market has set the Battle Line at S&P 500 level 1860-1880. There will be a great battle there between the Bulls and the Bears.

The great question is whether we breakdown soon and breakdown to lower level? Or do we first have a short bounce towards the 50 Day Moving Average resistance, then head down.

SPX_Feb_7_2016_Annotate

From the AI Trader point of view, on January 21, 2016, we have a Buy Signal on the 10, 20, 30 Day Optimized AI Portfolio (a good place), and then a 5 Day Optimized AI Buy Signal on February 4, 2016.

A breakdown in usually bullish short-term patterns is not a good sign, but anything can happen.

Human versus AITraderBot.com: Wednesday, February 3, 2016

In this Human versus AITraderBot.com segment, we look at the S&P 500 Stock Market and compare their opinions as of the end of trading on Wednesday, February 3, 2016:

Feb3_2016_MarketOpinion

AITraderBot.com

The AITraderBot using the 10 day Optimized, 20 day Optimized, and 30 day Optimized, all gave a Buy Signal on January 21, 2016, a great spot for a short-term bottom based on what we know now. Based on the different buy signals from the three different AITraderBots, the short-term trade might end either 2 days from now, 12 trading days from now, or 22 trading days from now.

Of course, the trade also ends with a 6% gain or a 2% loss. This sell rule is arbitrary and created by me, the human.

Human Opinion

Based on the recent market behavior, the near term bias is up, potentially hitting the resistance area of 1950, or even the 1962 or 1994 levels on the S&P 500.

We set a nice support floor of around 1900 on the S&P 500 for several days then we broke out of it last friday. We hit 1940/1950 resistance, reversed, and ended near 1900 resistance.

Today, we went down and really shook off weak hands, and then made a strong reverse to the upside at the end of the day.

The near term bias is up.

AI Trader Bot says to buy now? While the U.S. Stock market is tanking badly?

The AITraderBot just gave a swing trade buy signal at the end of the Thursday, January 21, 2016 trading day.

The human side is saying: “Are you sure? The U.S. market has been tanking and appears to have momentum to the downside? Are we going to stand in front of a runaway train?”

SPX_2016_01_21__Annotate

That is one of the benefits of the AI Trader Bot. The AI Trader Bot was taught about the World by a human, but the AI Trader Bot unemotionally is making a Rational decision based on the rules it created for itself. Emotions can hurt trading performance and the AITraderBot.com Trading Robot has no emotions.

And no, not every swing trade has to be a winner. The key is having the AI Trader Bot find low risk entry points, and quickly get out of the swing trade if it goes the wrong way, but if it goes the right direction, give the trade some room to run.

AI Swing Trading Can Reduce Risk and Losses in Down Markets

Buy and Hold investors and those who are anti-market timing often think that Swing Trading can be very dangerous.

It can, but based on several weeks worth of real world data with the Long only Artificially Intelligent (AI) Swing Traders, the Long-only AI Swing Trader Portfolios are losing less than a Buy and Hold Portfolio in a down market.

As of the close of Thursday, January 14, 2016 (and since the inception of December 22, 2015), the Buy and Hold Portfolio has lost 5.1%. While all the AI Swing Trader Portfolios have beat the Buy and Hold Portfolio.

Portfolio Return since Inception
Buy and Hold -5.1%
AI Trader 5 Day Optimized -2.1%
AI Trader 10 Day Optimized -3.9%
AI Trader 20 Day Optimized 0.0%
AI Trader 30 Day Optimized -2.0%
    Several things might account for this behavior:

  1. A Buy and Hold Portfolio takes the brunt of the losses.
  2. The AI Swing Trader can very selectively select low risk entry points. The AI Trader 20 Day Optimized chooses not to get into any trade! This is good.
  3. Sometimes, even a winning trade in this environment can help cushion the loss.
  4. The sell rule of selling at a 2% loss can help prevent the large downside loss situations.

We will continue to monitor, but if things work out well, maybe AI Swing Trading actually reduces downside risk compared to buy and hold investing!

Mark Zuckerberg: What about an AI Stock Swing Trader using Artificial Intelligence?

In 2016, CEO and founder Mark Zuckerberg has made a resolution to create an AI Assistant (Artificially Intelligent Assistant) to help him in his personal and business life.

Mark Zuckerberg: What about AI Swing Trader?

Swing Trading is a technique of trading stocks with a shorter time period from one day to two weeks or so.

There are many strategies out there, but if Mark Zuckerberg wants to create an AI Assistant, why not use Artificial Intelligence to Swing Trade for him?

In the traditional way, humans make decisions to buy and sell the stocks, or else program a computer to buy and sell stocks using the wisdom and thoughts of the programmer.

TraditionalTradingChart

In the Artificially Intelligent way, the human teaches the AI Swing Trader Robot about the World, and the Robot creates its own Trading Rules. The Robot can even continuously learn from newer information.
AITradingChart

AITraderBot.com does just that. AITraderBot.com is an Artificially Intelligent Swing Trader (using the ‘SPY’ Exchange Traded Fund which represents the U.S. S&P 500 Index) which observes more than 700 World Observation Points, and the AITraderBot makes up its own trading rules and it continuously learns. The AITraderBot creates Buy Signals, and there are rules when the holdings should be sold.

There are test portfolios being run, and the results are updated once a trading day. The AITraderBot tries to beat both a Buy and Hold Portfolio and Random Buy Swing Trading Methodologies.

Visit AITraderBot.com for more details.