Intelligent Stock Selection

Data, data, data... all about data!

Selecting the right stock is one of the most important decisions a trader makes, and StockHero Version 4 introduces two powerful tools designed to make this process more informed, data-driven, and intuitive: the Stock Performance Indicator and Market Intelligence. When used together, they give traders a comprehensive view of both a stock’s historical behavior and its broader market positioning, helping users make smarter choices with greater confidence.

Using the Stock Performance Indicator

The Stock Performance Indicator visualizes how well a stock has performed historically when traded under specific Marketplace strategies. Each stock is represented along a performance band ranging from bright green to grey, signaling stronger to weaker historical outcomes. This gives users a quick, at-a-glance understanding of which stocks have historically aligned well with various automated strategies.

While historical performance is never a guarantee of future results, the Stock Performance Indicator helps users narrow down their initial shortlist. For example, if a stock consistently appears in the higher performance band across several strategies, it may indicate that the stock’s past volatility, liquidity, and price behavior worked favorably with systematic trading models. This early filtering step saves time and guides traders toward stocks with historically stable or advantageous patterns.

Diving deeper with Market Intelligence

Once a user identifies a stock (or set of stocks) with promising performance signals, the next step is to evaluate its broader market outlook - and this is where Market Intelligence comes in. The feature aggregates insights from more than 3,000 data sources to present key metrics such as Sentiment, Fear Index, Fundamentals, Trust, and Innovation. These indicators paint a multi-dimensional picture of how the market views a company across behavioral, financial, and perception-based factors.

For example, a stock with strong sentiment and low fear scores may indicate increasing market confidence, while high innovation and trust metrics could suggest long-term resilience. Conversely, weak fundamentals paired with rising fear levels may be early warning signs. While these metrics do not represent the “true” state of a company, they offer valuable context that helps users understand underlying trends and external pressures influencing a stock.

Reviewing analysts’ target prices and ratings is equally important during the stock-selection process. These assessments offer a professional perspective on whether a stock is currently trading below or above its projected value, highlighting potential upside or downside based on expert evaluations. Understanding this gap helps users gauge whether a stock may be undervalued, overextended, or aligned with its long-term outlook.

Staying updated with the latest news is just as critical. Real-time news flow provides immediate insight into a company’s developments, risks, and catalysts - factors that can directly influence price movements. By keeping up with timely updates, users can make more informed decisions and adjust their bot portfolios proactively in response to market-moving events.

Bringing it all together

By combining both tools, traders can make decisions backed by historical alignment and real-time market signals. The Stock Performance Indicator helps identify candidates that have performed well under certain trading models, while Market Intelligence provides a deeper examination of the forces shaping the stock’s current and future potential.