What market opportunities do we post and why?

T-Advisor, your suite for self-directed investment management, has a module to help investors find new ideas to improve their returns. These “Investment ideas” has a list of market opportunities from exchanges around the world that our algorithm selects and update every Monday. That is why we post every week a selection of them, but what criteria do we use to choose you some of them?

First of all, we look into all the markets to find what stocks have been selected. The screen shows initially just some figures from the securities of each market. We take into account the trend. We opt for the ones with bullish trend and with less than 1% slope. Why? Because we prefer stable and progressive increases instead of sudden ones which makes the security more volatile.

Market opportunities screen in T-Advisor

The selection keeps on checking several figures in the T-Report:

  • The liquidity grade: it has to be higher than 5
  • The score: it has to be also higher than 5 or 6
  • The performance: it has to be positive in the year and show also a positive figure in the last year, to confirm that the stock did not suffer a strong variability.

T-Report screen with liquidity, score and performance

Finally, we also look the 1-year chart. We avoid charts with strong variations or sudden jumps upwards. We prefer steady positive trends to avoid high risks. You can find the difference clearly in these charts:

Chart with low slope in T-Report

Chart with high slope in T-Report

We consider that investments should be for a long-term. Trading is also a possibility for investors. We are not critical with it, but we prefer a more stable model. That is why our weekly proposals tend to be bets for that idea. Of course, markets change daily, but it does not mean that investors have to react immediately to every event. Portfolios should tend to be stable and include changes when your goals and risk profile change, because you evolve also as investors, or when your securities do not play a positive role anymore. That is why it is relevant the long-term view. That avoids sudden changes… and mistakes guided for the moment.

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