Smart Auto-Trading, is one of the first trading platform to use Artificial Intelligence at its core to actively trade US Equities. Its auto-trading technology simplifies stock investing down to a few easy steps. In this report, we will be looking at SC Model performance, Stock Circles’ model strategy.
By the end of 2017, SC Model Strategy had accumulated almost 2 years of auto-trading data in both simulation and trading mode, providing a good base to evaluate its performance vs. the S&P 500.
Artificial Intelligence Trading
At Stock Circles, 2016 was all about verifying the hypothesis that ‘AI stock investing’ was more accurate at screening and executing trades than traditional Technical Analysis methods. After proving the hypothesis with flying colors, 2017 was mainly focused on solidifying the platform while testing Smart Auto-trading’s best strategy in real trading mode.
Trading results featured in this report use the S&P 500 as the comparison benchmark. SC Model traded the same stocks as the S&P 500 and does not use compounding or leverage. Unless stated otherwise, all results depict a performance before expenses. SC Model traded the same numbers of days as the S&P 500. It accurately depicts an ‘apples to apples’ comparison with the benchmark.
SC Model is a long strategy with a trading capital of $25,000. The strategy divides its budget into 5 trading slots of $5,000. Once a stock sells, Smart Auto-Trading reinvests the released capital on a continuous basis.
Trading Results: Full article with graphs and pictures: http://bit.ly/2rG8vqZ
Trading results at the end of 2016 demonstrated a trade success rate of 69.24%. Profits/Loss were recorded at 51.66% before expenses vs. 11.96% for the S&P 500 for the same period.
In 2017, trading results showed profitable trades climbing to an accuracy rate of 90.76%, a 21.52% efficiency gain over 2016.
Improvements were also noted in other key evaluators. For example, average drawdown days went down from 6 to 4 and consecutive losses were eliminated.
Losses in 2016 averaged $-82.50 and were happening regularly with losses 31/100 trades. In 2017, we saw losing trades averaging $-212.57 but they only numbered 9/100 trades.
2017 yielded 35.93% profit before expenses vs. 19.60% for the S&P 500, a performance 1.83 times over the benchmark. The relatively lower profit margin compared to the previous year could be explained by a reduction in trades designed to improve expense ratios.
In 2016, Smart Auto-Trading’s model strategy performed 1,476 trades while 2017 saw only 498 trades. It executed 66% less trades than 2016. Trade optimization had for benefits to lower churn and improve expense ratios.
A lower expense ratio meant more money in investors pockets. 2016 results, after expenses at $3.95/trade for 1,476 trades, meant expenses of $-5,830.20, effectively reducing profits down to 28% from 51.66%. In comparison, 2017 saw 498 trades, expenses of $-1,967.10 and a net profit of 28.06% from 35.93%. All and all, 2017 made the same profit as 2016 after trade commissions were withdrawn.
During 2016-2017, Stock Circles’ Model Strategy consistently produced profits averaging more than twice that of the S&P while using the same stocks as the benchmark.
In 2017, it’s posted a 21.52% improvement in profitable trades over 2016. It performed 249 trade roundtrips with a success rate of 90.76% and concluded the period with 35.93% Profit/Loss before expenses.
While read more Smart Auto-Trading is still young, the technology is showing stability and consistency in yield from account to account, month to month.
Based on the data surveyed and because it is expected that Smart Auto-Trading will keep improving over time, we can reasonably expect that, market helping, it will continue to outperform the S&P 500 in years to come.
About Stock Circles
Stock Circles Inc., is an Internet Investment Advisory firm headquartered in Los Angeles, CA. It operates a robo-advisor / robo-trader that uses Artificial Intelligence at its core to auto-trade the S&P 500. The Company‘s mission is to simplify stock investing using technology.
If you are interested in ‘AI stock investing’ or just curious about how technology can help you become a better investor, you can register and try Smart Auto-Trading today in simulation mode free of charge.
For more information, please visit stockcircles.com or contact us via email at: firstname.lastname@example.org.
Stock Circles Inc. (Stock Circles) is an SEC registered Investment Advisory. It operates a Service (Smart Auto-Trading) that make use of Artificial Intelligence concepts to screen and monitor stocks on an ongoing basis. Stock Circles uses an automated, active trading strategy. No manual trading took place. Unique experiences and past performance does not guarantee future results. Actual results are influenced by market conditions and/or service availability and accuracy.