Methodology

The portfolio invests exclusively in stocks listed on Oslo Børs. The eligible universe is maintained in a database table and can be updated without code changes. The universe currently covers 15 liquid large-cap stocks across seven sectors.

No stock is hardcoded. If a stock is delisted or marked inactive, it is excluded from the next rebalance automatically.

Three strategies run in parallel from the same starting capital, scoring the same universe with the same AI call each day. They differ only in how they translate scores into a target allocation.

These limits are enforced by the construction algorithm and cannot be overridden — not even by the AI. The position count limit varies by strategy.

The portfolio is reviewed once per day. Any rebalancing decision made at the end of day T is executed at the open of day T+1. There is no intraday trading.

Rebalancing is minimal by design — the algorithm only generates trades when the current allocation differs meaningfully from the target, to avoid unnecessary churn.

All trades carry a realistic cost load to make the simulation credible. Costs are stored explicitly on each trade so historical reconstruction is exact regardless of future config changes.

The AI is strictly advisory. It scores each stock in the universe from 0 to 100 and provides a short thesis. Those scores are one input into the construction algorithm — nothing more.

The AI cannot directly allocate capital, execute trades, or override any constraint listed above. If the AI gives a high score to a stock that would breach the sector cap, the algorithm simply allocates less of it (or none).

Each day the algorithm runs in this order:

1. Fetch the current stock universe and today's AI scores.
2. Rank stocks by score, highest first.
3. Select the top candidates that fit within the strategy's position limit.
4. Allocate capital according to the strategy mode: proportional to score (Momentum & Concentrated) or equally weighted (Equal Weight).
5. Enforce all hard constraints (position size, sector cap, cash floor).
6. Compare target allocation to current holdings.
7. Generate the minimal set of buy and sell trades to rebalance.
8. Record the new snapshot, trades, and AI log.

Performance is measured against the Oslo Børs All Share Index (OSEAX), fetched daily from Yahoo Finance. Daily values are stored alongside portfolio snapshots so the comparison remains accurate over time.