Danelfin Smart Investing Made Easy – We empower retail investors with institutional-level technology, formerly available only for top Quant & Hedge Funds.

We founded Danelfin to help every investor make the best possible investment decisions in financial markets, starting with the stock market. We believe that Artificial Intelligence is the most suitable way to analyze the massive and growing amounts of data related to stocks and generate a predictive score every day.

Danelfin founders are experts in physics, engineering, data analytics, software, Artificial Intelligence, and asset management, led by an award-winning tech entrepreneur.

Our strength lies in the values that inspire us and that we apply every day: Innovation, drive to improve, trust, responsibility, and excellence.

Mission

Democratize the use of Artificial Intelligence to Help Everyone Make Better Investment Decisions

Key Company Milestones

2016 R&D project started

2018 Company founded in Barcelona

2019 Artificial Intelligence model readyto predict stock alpha

2020 Release of stock analytics platform

2021 Launch of danelfin.com,open to all investors

How Danelfin Works

Danelfin is a stock analytics platform powered by Explainable Artificial Intelligence. It rates stocks and ETFs with an easy-to-understand global AI Score, ranging from 1 to 10; the higher the score, the higher the probability of beating the market in the next 3 months.

Best Stocks strategy

We built an investment strategy for US-listed stocks, using the Danelfin AI Score to demonstrate the predictive capabilities of our Artificial Intelligence. The AI-powered Danelfin Best Stocks strategy generated a return of +158% from January 3, 2017, until December 30, 2022, vs. only +70% of the S&P 500 in the same period.

*Read the Danelfin Best Stocks strategy report (PDF) for detailed and technical information about this US-listed stocks investment strategy and the associated portfolio. This Danelfin Best Stocks strategy performance is based on backtested results. Backtested performance is not an indicator of actual future results.

The AI Score

Danelfin analyzes all US stocks and STOXX Europe 600 stocks, and US-listed ETFs

Our AI transforms hundreds of complex stock/ETFs indicators and thousands of stock/ETFs features to rate stocks and ETFs with an easy-to-understand score: the AI Score.

The AI Score rates stocks and ETFs according to the probability of beating the market in the next 3 months. For US-listed stocks and ETFs, the benchmark is the S&P 500 TR index, and for European stocks, it is the STOXX Europe 600 index.

Stocks and ETFs with the highest AI Scores (7 to 10) have a higher probability of outperforming the market, while stocks and ETFs with the lowest AI Scores (1 to 3) have a lower probability.

Example of the main section of a stock page in Danelfin, where you can easily see the AI Score and other key information regarding a stock.

Danelfin AI Scores are translated into ratings/signals for short-term investment timeframes (3 months), as explained in the following table. Below the AI Score of a stock or ETF, you will always find the corresponding rating.

Our Artificial Intelligence calculates probabilities, not certainties. The AI Scores and the ratings/signals should be used as useful but not infallible information to complement your own investment decision process.

Trade Ideas: Stocks/ETFs with best track record

The Trade Ideas section highlights potential trades where Danelfin AI has been sharper in the past since 2017, with at least a 60% win rate for Buy or Strong Buy signals (Long) and at least a 60% loss rate for Sell and Strong Sell signals (Short). You can filter potential trades by selecting a 1M, 3M, or 6M investment horizon.

For Trade Ideas stocks, you can see the historical track record of buy/sell signals on top of the price chart and the expected forecast of our AI for the different time frames.

The technology behind Danelfin

The AI Score is calculated by our Artificial Intelligence, which analyzes 10,000 features per stock/ETF per day, based on more than 600 technical, 150 fundamental, and 150 sentiment indicators for every stock and ETF.

The predictive capacity achieved by our Artificial Intelligence and the amount of data processed for every stock/ETF are out of reach for human analysis.

Some examples of the hundreds of indicators that our AI analyzes every day to learn and improve its predictions:

Technical indicators52 weeks high %, RSI, RSI Slope, MACD, Fibonacci, Distance to support, Momentum, Volatility, WillR, MFI, and many more.

Fundamental indicatorsCROCI, EBITDA, EPS Growth this year, P/E, P/FCF, P/B, P/S, Gross Margin, F-Score, ROA, Sales Q/Q, and many more.

Sentiment indicatorsAverage price target analysts, EPS estimate for next quarter, Short Float, Insider Transactions, Hedge Fund Transactions, and many more.

How our AI rates stocks

Our AI uses every day the learnings from the latest 252 market days (US market) and the latest 500 market days (European market) to identify the stock and ETF features (alpha signals) that generated the most alpha (positive and negative) after 60 market days.

These special stock and ETF features that we call alpha signals, are then used in combination in hundreds of decision trees to calculate the probability of stocks and ETFs beating the market in the following 3 months. The final probability for a given stock or ETF of beating the market is the average probability of all the probabilities calculated by each decision tree.

Alpha generation capabilities

We continuously measure how successful is our Artificial Intelligence at ordering stocks and ETFs according to their potential of overperforming the market (generating alpha).

US Stocks with the highest AI Score (10/10) outperformed the market (S&P 500) by +20.08% on average after 3 months (annualized alpha) in the last 5 years, while stocks with the lowest AI Score (1/10) underperformed the market by -30.92% on average (annualized alpha).

Universe: US-listed stocks

Date range: December 30, 2016 – June 27, 2022

Trading days: 1,445

Sample size: 8,165,695 (1,445 x 5,651)

Calculation: We calculate stocks' average alpha after 3 months per AI Score every day. Charts show the average annualized alpha after 3 months per AI Score for the 1,445 trading days.

European stocks with the highest AI Score (10/10) overperformed the market (STOXX 600) by +22.65% on average after 3 months (annualized alpha) in the last 3+ years, while stocks with the lowest AI Score (1/10) underperformed the market by -8.12% on average (annualized alpha).

Universe: STOXX Europe 600 stocks

Date range: January 7, 2019 – November 21, 2022

Trading days: 1,009

Sample size: 605,400 (1,009 x 600)

Calculation: We calculate stocks' average alpha after 3 months per AI Score every day. Charts show the average annualized alpha after 3 months per AI Score for the 1,009 trading days.

Over the past five years, US-listed ETFs with the highest AI Score (10/10) recorded an average annualized performance of +8.29% after 3 months. In contrast, ETFs with the lowest AI Score (1/10) achieved only an average performance of +1.20%.

Universe: US-listed ETFs (2044 ETFs)

Date range: January 9, 2017 – October 31, 2022

Trading days: 1459

Sample size: 2,982,196 (1459 x 2044)

Calculation: We calculate ETFs' performance after 3 months per AI Score every day. Charts show the average annualized performance after 3 months per AI Score for the 1459 trading days.

Fundamental, Technical, Sentiment, and Low Risk scores

While the AI Score has a holistic approach , considering all the different types of information available for a stock or ETF, the Fundamental, Technical, and Sentiment subscores rate the probability of beating the market based only on those specific types of indicators.

These specific subscores can be helpful to enrich your investment strategy. For example, if you favor fundamental analysis when picking a stock or ETF, you could select the one with the highest Fundamental subscore between two with the same global AI Score. The same would apply to investors that usually favor technical or sentiment analysis in their stock/ETF picking process.

Specific subscores complement the AI Score and are useful for different investment styles.

The Low Risk subscore rates the negative price fluctuations (semi-deviation) of the latest 500 days. The higher the Low Risk subscore, the lower the downside risk.

The AI Score is not the average of the subscores. The AI Score is calculated by analyzing all the data types available for a stock or ETF, independently of the specific subscores.

Understanding the alpha signals behind our scores

Danelfin uses Explainable AI, so you can easily check the features and indicators taken into account by our Artificial Intelligence to calculate stock and ETF scores. There are no “black boxes”. All the data behind our scores are transparent and easy to understand.

The alpha signals are the stock and ETF features that are more relevant to calculate the probability of beating the market. These alpha signals are ordered according to their alpha relevance. In the Scores Explanation window, alpha signals are represented in green if they are positive (higher than average alpha odds) and red if they are negative (lower than average alpha odds).

In the Scores Explanation window, you can easily see the key stock indicators or features taken into account for the different stock scores, ordered by their alpha relevance.

Use Cases

Build and Optimize Your Portfolio Using AI Scores

Danelfin’s AI Scores can be useful to decide which stocks and ETFs to add, hold, or discard in your portfolio, taking into account a 3 months investment timeframe.

Danelfin allows you to create one or more portfolios to watch, depending on the plan you choose. You can monitor your portfolio’s average AI Score and receive daily alerts on any changes on your stocks and ETFs' AI Score. Use these alerts to optimize your portfolio and be always informed about your portfolio’s overall alpha odds.

The final goal is to have a balanced and diversified portfolio with at least an overall AI Score of 7, as this is the minimum AI Score that allows you to invest with the odds in your favor. It is important to continuously monitor, at least weekly, any relevant score changes in your portfolio.

Identify the best moment to invest in your favorite stocks

Using the Score Evolution section, you can easily see the evolution in time of a stock or ETF's AI Score.

This is a key Danelfin feature that allows you to have a long-term view of how a specific stock or ETF has been rated in the past, to track its evolution, and identify the best moment to buy it.

If a stock or ETF is in your wish list, but its AI Score is low at the moment, wait until it is upgraded to a BUY (7-8-9) or STRONG BUY (10) rating to add it to your portfolio, as it will indicate that it has higher probabilities of beating the market in the next 3 months.

Danelfin is a stock analytics platform powered by AI. It helps investors to pick the best stocks, optimize their portfolios, and make smart data-driven investment decisions.

BCN

Danelfin Technologies, S.L.

Carrer Balmes 129, 2-1. 08008

Barcelona, Spain

NYC

Danelfin Technologies, LLC

655 3rd Avenue Suite 1830

New York, USA

Warning Risk:

Danelfin's Artificial Intelligence calculates stocks' probabilities of beating the market based on past market behavior and stocks performance. It does not calculate or predict actual results. The performance of illustrative portfolios on this site is based on backtested results. Backtested performance is not an indicator of future results. Danelfin's AI Scores and ratings cannot substitute professional investment advice or independent research and verification. Using our site, you are accepting our Terms of use, Privacy and Disclaimer policies.