Fully automated portfolio management

Stockworm's autoinvestor is an immensely powerful investing tool which is simple to use. The purpose of the autoinvestor is to automatically issue customized buy/sell recommendations on an ongoing basis. If you choose to follow these recommendations, you will execute the trades with your brokerage house and then update your Stockworm portfolio. The next trading day, new buy/sell recommendations will be issued or a 'no action necessary' message will be sent if the autoinvestor considers your portfolio to be in accord with your investing strategy.

To use the autoinvestor, you must first describe your investing preferences as an autoinvestor strategy. You then associate this strategy with one or more portfolios, thereby allowing the strategy to provide recommendations on the associated portfolios.

Autoinvestor strategies

An autoinvestor strategy is based upon a set of general portfolio preferences along with a collection of trading rules. The general preferences include:

• number of stocks in your portfolio
• composition of your portfolio (all long, all short, or a mix)
• cash reserve which should not be used to trade stocks
• options for purchasing rounded lots

The trading rules are divided into open (buy/sell short) rules and close (sell/cover short) rules. If you have a mix of longs and shorts in your portfolio, then you can provide different rules for each position type.

open rules
add stocks in screen	add all of the stocks returned by a given screen to a list of candidates for open positions
add symbols	explicitly specify a list of candidate stocks for open positions
avoid wash sales	this rule prevents the autoinvestor from re-opening a position which has been closed at a loss within the last 30 days (a wash sale)
blackout time	blackout time is a period of time after a position is closed during which the strategy is forbidden to require the stock.
excluded symbols	open position recommendations will never be issued for any stocks in the excluded symbols list
liquidity	the liquidity rule is used to limit the effect of large position shifts upon the price of the stock
market trend rule	removes all stocks from the list of open candidates if the market (defined by the Dow Jones, Nasdaq, S&P 500 or a custom symbol) is not following a user-specified market trend such as 'rising over past 1 month'
price limits	any position which is opened by the autoinvestor has a stock price greater than or equal to the minimum price and less than or equal to the maximum price. Tide mark
remove stocks in (not in) screen	remove all stocks from the list of open candidates which appear (do not appear) in the selected screen
technical signal filter	removes all stocks from the list of candidates for which the specified technical signal is not in a 'buy' state for long positions or not in a 'sell' state for short positions
close rules
close stocks in (not in) screen	close any open stocks which are appear (do not appear) in the provided screen
hold stocks passing open rules	hold any open stocks which pass all of the open rules (e.g. are valid candidates for filling closed positions) and are within the top 'n' positions in the list of open symbols (you specify 'n' as, e.g. the number of stocks in your portfolio or two times the number of stocks in your portfolio). This rule helps reduce turnover in your portfolio by holding on to stocks which are still valid, per your open rules.
hold stocks in (not in) screen	hold any open stocks which are appear (do not appear) in the provided screen
hold time	hold an open position for at least a user-specified time period
close after	close an open position after a user-specified time period has passed
stop gain (loss)	close open position when the gain (loss) exceeds the user-specified limit. Tide marks can be optionally enabled for these rules. Tide marks protect gains as follows (for long positions): for stop loss rules with tide marks, the loss is based upon the peak price during the holding period. For stop gain rules with tide marks, the gain is based upon the minimum price during the holding period.
technical signal close	close any open stocks for which the specified technical signal is in a 'sell' state for long positions or in a 'buy' state for short positions
close symbols	close the stocks which are listed in the close symbols form
hold symbols	hold the stocks which are listed in the hold symbols form
market trend close rule	the market trend close rule is used to close all open positions when the market is trending in an undesired direction. the 'market' is defined by the dow jones, nasdaq, s&p 500 or a custom symbol. the 'trend' is defined as a rising or falling value of the market symbol over a time period which you specify.

Each rule can be used multiple times or not used at all and the rules can be executed in any order for a highly flexible investing system.

Autoinvestor simulations

Stockworm provides you with full functionality to trade a simulated portfolio using your autoinvestor strategy over the past few years for the purpose of finding an optimal strategy for your investing style and portfolio size.