AI-Driven Portfolio Opimisation

Algorithm to Select Your Portfolio Based on Intuitive Code AI Analytics

Algorithm to Select Your Portfolio Based on Intuitive Code AI Analytics

This article outlines a structured method for choosing a portfolio that matches your risk tolerance and financial goals, enhanced by Intuitive Code’s AI analytics. Leveraging products like QMI AI, which offer pre-optimized portfolio suggestions, users can streamline their selection process, focusing on refining the portfolio based on personal capital, risk tolerance, and real-time data.

Step 1: Reviewing the Preliminary Selection Criteria

Before proceeding, it’s essential to complete the initial selection steps outlined in Algorithm to Select Your Portfolio Based on Stock Risk Profile and Uniqueness. By doing so, you ensure that your portfolio aligns with foundational parameters such as risk profile and uniqueness, which guide the selection toward stocks best suited to your preferences.

Step 2: Determining the Optimal Number of Stocks in Your Portfolio

Intuitive Code’s AI analytics, including QMI AI, provide suggested portfolios based on optimal stock allocations. However, determining the exact number of stocks to include in your portfolio should still take into account your available capital and risk tolerance.

Key Considerations:

  • Avoid Overextending Positions: Including too many stocks can dilute focus, add complexity, and reduce flexibility to manage volatility. Each position should be manageable and strategically valuable.

  • Ensure Portfolio Balance: Maintaining a reasonable number of positions enables efficient monitoring and quick responses to market changes, leading to more effective portfolio management.

For precise recommendations on the number of stocks suitable for various capital levels, consult the TradePilot (subscription required).

Step 3: Choosing the Best Candidates for Your Portfolio

With your foundational criteria and portfolio size in mind, your next task is to select stocks from the AI-suggested list that align most closely with your specific goals. Intuitive Code’s products like QMI AI have already identified high-potential stocks, making your role one of refinement rather than primary selection. There are two approaches you can take here: Automated Mode and Manual Mode.

Automated Mode

For a streamlined, data-driven selection process:

  1. Provide Current Price (CP) Values: Ensure the AI agent has the CP values for each stock in the AI-suggested list.

  2. Request a Refined List: Ask the AI agent to provide the “[X] best stocks to buy” based on current prices and analytic insights, where X represents the optimal number of stocks for your portfolio (determined in Step 2).

This approach provides you with an instant, optimized selection list based on Intuitive Code’s real-time analytics.

Manual Mode

For those who prefer a deeper analysis or wish to apply additional criteria, the Manual Mode allows you to engage directly with each stock, calculating Bull Potential (BP) for growth-focused strategies.

Bull Potential Selection To identify stocks with upward potential, calculate Bull Potential (BP):

  1. Retrieve Key Metrics: For each stock, query the AI agent to obtain PT (Price Target), SP (Support Pivot), RP (Resistance Pivot), BCS (Best Case Scenario), WCS (Worst Case Scenario), STT (Short-Term Trend), MTT (Mid-Term Trend), and R (Rating).

  2. Calculate Bull Potential (BP):

    • Use BP(i) = PT - CP, where iii varies across the number of selected stocks.

    • Alternatively, calculate BCS - CP for stocks with ratings classified as Neutral, Buy, or Strong Buy—with Strong Buy receiving the highest priority.

  3. Result: You now have a refined Bull List, an optimal dataset of stocks with the highest potential for upward movement.

Intuitive Code’s Proprietary Picks: Daily Market Leaders

In addition to standard portfolio suggestions, Intuitive Code provides exclusive, proprietary selections known as the Daily Market Leaders (Bull and Bear of the Day). This selection highlights a stock with exceptional daily potential for upward movement, based on advanced calculations and proprietary analytics.

This information is communicated through the Live Commentary channel on Microsoft Teams, offering users real-time access to the day’s most promising stock. Including this pick in your strategy can help you act confidently on high-probability opportunities identified by Intuitive Code’s expert team.

Additional Considerations and Practical Tips

  1. Regular Monitoring and Adjustment: Analytics like CP, PT, BCS, and WCS are dynamic and change with new data. Regularly review and adjust your Bull List using real-time guidance from the AI agent.

  2. Leverage AI to Maximize Precision: By using Intuitive Code’s AI analytics, you’re able to process market variables that are challenging to analyze manually. This AI-powered approach ensures that each stock selection is optimized to reflect the latest insights and trends.

  3. Disciplined Use of AI Analytics: Intuitive Code’s advanced analytics tools provide a competitive edge, but consistent, disciplined application is key to realizing their full value. Regularly reviewing your portfolio through the Quantum Insights Library and the AI agent will ensure that your strategy remains resilient.

Conclusion

Intuitive Code’s products, like QMI AI, already perform much of the intricate work required to curate an optimized portfolio, offering users a solid foundation to build upon. Your task is to refine the portfolio based on individual factors like capital, risk tolerance, and the latest analytic insights. By leveraging Intuitive Code’s real-time data and analytics, investors can make confident, data-informed decisions tailored to their goals and circumstances.

For those seeking further support, resources such as the Quantum Insights Library and the AI agent provide comprehensive analytics, enabling adjustments that keep pace with market dynamics. This structured approach empowers investors to create resilient, optimized portfolios that reflect both personal goals and high-precision AI insights.

Flowchart for Selecting Your Portfolio Based on Intuitive Code AI Analytics

Explanation of Flowchart

  • Start with preliminary portfolio selection.

  • Define Goals, Capital, and Risk Tolerance to guide the portfolio.

  • Select Portfolio Algorithm according to risk level.

  • Filter by Uniqueness to find stocks with strong market potential.

Finalize by considering market adjustments or stability in chosen stocks.

This structured flowchart provides an organized view of the decision-making process for users utilizing Intuitive Code’s AI analytics for portfolio selection.