Abstract:
One of the main reasons why people use robo-advisors is that the
traditional financial instruments (e. g. deposits, bonds) will promise zero returns
in the near future. Robo-advisors using built-in algorithms to determine the assets
of investment portfolios for short-run and long-run periods will be one of the
promising options for the investor to obtain income in order to achieve his/her
goals. Live Trading bots will be able to provide substantial passive in-come for
investors, that is an attractive alternative, compared to the advice of traditional
human advisors. The goal of this paper is to develop a robo-advisor bot to make
investment decisions in order to choose the best financial instruments considering
risk-return criterion using different investment strategies. The paper deals with the
models of robo-advisor bot for different risk attitudes of investors. Each investor
can choose among different investment strategies, such as buy-and-hold strategy,
moving average strategy, relative strength index strategy, support and resistance
strategy with different performance measures. All strategies dealing with riskreturn criterion for precious metals demonstrate the greatest efficiency for riskaverse investors. RSI (relative strength index), buy-and-hold strategies are also
effective for Netflix shares. Oil and cryptocurrencies are most appropriate for
different strategies of risk-seeking investors. Tesla stock is the most appropriate
for risk-neutral investors under definite period.
