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Sustainable Robo-Advisor Bot and Investment Advice-Taking Behavior

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Digital Transformation (PLAIS EuroSymposium 2022)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 465))

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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 risk-return criterion for precious metals demonstrate the greatest efficiency for risk-averse 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.

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Authors and Affiliations

  1. Kherson State University, 27, Universitetska St., Kherson, 73003, Ukraine

    Vitaliy Kobets & Oleksandr Petrov

  2. Kherson State Agrarian and Economic University, 23, Stritenskaya St., Kherson, 73006, Ukraine

    Svitlana Koval

Authors
  1. Vitaliy Kobets
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  2. Oleksandr Petrov
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  3. Svitlana Koval
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Correspondence to Vitaliy Kobets .

Editor information

Editors and Affiliations

  1. University of Gdansk, Sopot, Poland

    Jacek Maślankowski

  2. University of Gdansk, Sopot, Poland

    Bartosz Marcinkowski

  3. University of Coimbra, Coimbra, Portugal

    Paulo Rupino da Cunha

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Kobets, V., Petrov, O., Koval, S. (2022). Sustainable Robo-Advisor Bot and Investment Advice-Taking Behavior. In: Maślankowski, J., Marcinkowski, B., Rupino da Cunha, P. (eds) Digital Transformation. PLAIS EuroSymposium 2022. Lecture Notes in Business Information Processing, vol 465. Springer, Cham. https://doi.org/10.1007/978-3-031-23012-7_2

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  • DOI: https://doi.org/10.1007/978-3-031-23012-7_2

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-23011-0

  • Online ISBN: 978-3-031-23012-7

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