Development of an Iterative Algorithm Applied for the Investment Portfolio Formation: Suggestions and Recommendations Regarding the IT Service

In today's financial world, forming the most effective portfolio for management purposes is a rather complex and fascinating field of study. Nevertheless, this topic is very difficult because there is a great deal of uncertainty in the market, both in terms of macroeconomics of states and microeconomics of various institutions. Many specialists try to apply various scientific methods to strengthen the investment portfolio and use machine learning methods, statistical methods, and in-depth training based on data. All specialists in this field share one common goal - to maximize portfolio profitability with the lowest possible risks. As before, the pace of development is accelerating and, together with these, portfolio managers have to adapt. It is necessary to react to market fluctuations in time, to hedge risks without losing the profitability of the portfolio. To keep up with the market, specialists resort to process automation. In my current work as a researcher I face the following question: how effective is the method of iteration algorithm for application in the process of investment portfolio formation. To enhance the effect of the algorithm, I also decided to introduce fundamental analysis, screening by financial metrics. The ultimate goal is to build such an algorithm that would easily be understood by 3rd person and be much appreciated in terms of its efficiency. Several problems should be solved in order to code robust and smart algorithm for investment portfolio collection. The first is analysis of forming the investment portfolio methods and methods of evaluating the efficiency of the investment portfolio. Then conducting analysis of evaluation the possibility of using an iterative algorithm for the formation of an effective securities portfolio. And, finally, comparison of the iteration algorithm’s efficiency with other methods.