A good investing decision should be based on a multi-dimensional consideration of many criteria. However, making decision on the basis of too large data volume is not easy. To solve this dilemma, Addaptron has developed Investment Analyzer InvAn (IA) that performs fundamental, technical, and timing analyses converting them into three ratings. Then IA combines these ratings into a single number, composite rating, using a special algorithm.
IA fundamental analysis is performed on the basis of several key ratios and parameters (factors) to reflect company and its stock actual state and dynamics. Also it includes stock performance expectations on the basis of analysts’ opinion and external ratings. IA technical analysis rating is a result of processing the signals from tens of technical indicators and combining them into a single number by using Artificial Neural Networks (ANN) algorithm that allows reaching the best accuracy in the forecast. IA timing rating defines optimal time of a stock to be bought (sold) in the current stock market conditions.
Due to a fast and automatic data processing, IA enables watching hundreds of stocks. IA composite rating allows ranking stocks (stock comparison) daily from the worst to the best. It also has other useful features, such as, calculating optimal cash reserve. It can forecast stocks’ portfolios or an individual stock (index) on the basis of Fourier series analysis or using pattern similarity. It has also a filter to select stocks with Cup-With-Handle pattern, as well as, correlation analysis tool for advanced portfolio management.
IA helps investors pick the right stocks for their portfolio and determine optimal investment timing. It increases the speed and depth of analysis, makes most necessary calculations for investors, and maximizes profitability. IA is a comprehensive system with user-friendly interfaces that is easy to use.
The main purpose of IA is to provide users with in-depth analysis to maximize the return on their investments. IA has been tested for many years with excellent results; however, it has its own limit as any other tool. According to Efficient Markets approach, news and other public information are incorporated into the price of a stock with a certain time delay (price is supposed to reach and keep a stable equilibrium that change only each time a relevant new information is known). Since IA does not formalize all informational universes, monitoring companies’ news and macroeconomic trends are very important.
© Alex Shmatov. Published with permission of the copyright owner. Further reproduction strictly prohibited without permission.