Can we ask Optimal Trader to scan the entire market, searching for the top 10 (or x-number) stocks that can be combined to create an optimal portfolio?
We have integrated our risk management tool and our scanning tool. You can let the expected returns in the Portfolio Optimization window be proportional to Portfolio Scan results. The result of Portfolio Scan is a value for each stock which will be larger the better the stock has performed with regard to your criteria. Portfolio Optimization will allocate the assets in your portfolio with regard to Portfolio Scan scores of each stock, the risk of each stock and correlation between stocks. Besides that you can automatically deselect stocks from the portfolio if they currently do not have a buy signal. Scanning thousands of stocks with regard to some criteria for the top 10 stocks often returns strange results. It is statistically better to scan a hundred stocks causing the likelihood for extreme price behaviour to drop radically.
