Algorithm to Prevent Losses from Short Squeezes and Share Price Manipulation

This article provides a disciplined approach to help users prevent losses resulting from short squeezes, pump-and-dump schemes, and share price manipulation.

Algorithm to Prevent Losses

In the current U.S. stock market environment, the presence of hundreds of MEME stocks creates high levels of speculation, often fueled by Federal Reserve policies that favor short-term speculation over long-term stability. As a result, it’s crucial to maintain a disciplined approach and avoid being lured into speculative, high-risk investments driven by market volatility and manipulation.

Let’s get started.

Step 1: Focus on Premium Stocks in QMI AI

To minimize exposure to unpredictable price swings and manipulation, we strongly recommend focusing on premium stocks included in advanced AI products like Intuitive Code’s QMI AI. These premium stocks are specifically selected for their resilience to speculative market activity, helping investors avoid the destabilizing effects often associated with MEME stocks and other highly speculative assets.

Step 2: Avoid High-Risk Stocks

Identify and filter out risky assets by completing the steps outlined in the Algorithm to Select Your Portfolio Based on Stock Risk Profile and Uniqueness. → Access the article here: https://knowledge.intuitivecode.ai/a-216-algorithm-to-select-your-portfolio-based-on-stock-risk-profile-and-uniqueness

When building a resilient portfolio, it is essential to reject stocks exhibiting aggressive or very aggressive risk profiles. These stocks are more likely to be influenced by speculative trading patterns and are therefore more vulnerable to events like short squeezes and manipulated price increases. By filtering out these high-risk stocks, you increase the stability and sustainability of your investments.

Step 3: Exclude Assets with Smart Fraud Status Other than “Clear”

Intuitive Code’s advanced analytics suite includes a proprietary parameter, LD (smart fraud status), specifically designed to detect potential fraud, share price manipulation, and short squeezes. This exclusive technology offers a powerful way to screen for red flags and identify stocks that may be at risk of manipulation.

→ Learn more about Intuitive Code’s AI Analytics Datasets here: https://knowledge.intuitivecode.ai/a-219-intuitive-code-ai-analytics-datasets

To enhance portfolio resilience, exclude any stocks with an LD status other than “Clear.” Rejecting stocks with aggressive or very aggressive risk profiles combined with any fraud status other than “Clear” further reduces the likelihood of exposure to manipulation or extreme price volatility.

A Comprehensive Solution: Solving 98% of Cases

By completing these three steps, you have applied a robust framework to prevent losses from speculative trading schemes. This strategy effectively protects against 98% of scenarios involving pump-and-dump schemes, short squeezes, and other forms of share price manipulation. Congratulations on taking proactive measures to safeguard your portfolio from high-risk environments.