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STEP 7: Consult


During Step 7, our financial consultant selects the best stocks and ETFs for your robot to trade. A list of stocks may be compiled based on the recommendations of companies that have long successful track records in stock selection. The list is filtered so that it only includes the symbols that the companies agree will increase in value. Quality ETFs are added to the list. Finally, the list is filtered based on the test performance of your trading robot.


There are plenty of companies that specialize in selecting stocks. Each company uses a different methodology that is consistently profitable. It is easy to take advantage of their comprehensive research and profit by investing in the stocks that they agree on. Your trading robot will decide when to buy and sell the individual stocks and ETFs and work towards making a higher profit (than simply buying and holding the same assets).


Select Successful Stock Selection Services

There are many companies and investment gurus who offer stock selection services. Typically, they use fundamental analysis which includes critically reviewing a business’s financial statements. The financial statements describe the business’s assets, liabilities, earnings, and its competitors and markets. There are plenty of notable services which successfully select symbols that increase in value. Each uses a slightly different technique.

Since they sell their advice, there is no reason to reinvent those wheels. However, selecting successful services is not straightforward. It’s important to realize that while there are many companies that are successful at selecting stocks, luck plays a significant role.

Avoid Survivorship Bias

  1. Imagine 1000 companies that offer selection services, have no skill, and only rely on luck.
  2. Each company has a 50% chance of selecting symbols that beating the stock index.
  3. At the end of one year, roughly 500 beat the index simply due to pure luck.
  4. After two years, there are about 250 consistently successful companies.
  5. After four years, there are 62 companies that have never been wrong.
  6. Even after 7 years, there are still about 7 successful companies!
  7. The “Lucky 7” illustrate the problem of survivorship bias.

How does one determine the difference between luck and skill?

If you invest while following one company, there is a chance that the performance of your portfolio is based more on luck than skill.

Compile a Comprehensive Collection

To mitigate the role of luck, StepsTeam compiles a list of companies that have long track records of providing successful stock selection services. Next, we create a comprehensive collection of all the symbols that each company recommends for investing. A point is awarded to a symbol each time one of the companies recommends it. The most highly recommended symbols have the most points.

Select the Screened Symbols

StepsTeam selects the most highly recommended symbols. Next, the symbols are filtered based on the criteria required to facilitate the best performance of the trading robot. This methodology of stock selection has a built in contingency plan. If the market changes in such a way to undermine the performance of the trading strategy, the fallback is quality fundamental analysis based on the aggregated results of successful stock selection services. In addition to the stocks, ETFs (which include the recommended symbols) may be recommended for the portfolio.

Ongoing Quarterly Support

As time passes, attributes of each stock changes. That means the portfolio of recommended symbols will evolve. StepsTeam will provide ongoing symbol selection support for your trading robot. While some software companies leave you to succeed or fail on your own, StepsTeam is interested in supporting you long term to help guarantee a profitable track record for your trading robot.


When this step is completed, you will receive a report that will be included in the due diligence documents. It will describe the symbol selection methodology. It will also include a list of symbols that are recommended for your trading robot.