S&P 500
This Finforge-N3 AI model flow starts with the S&P 500 as the asset universe, then chains together two AI model nodes: Screener-N3 and Forecast-N3.
The idea is simple: first narrow the universe to more interesting candidates, then forecast their near-term return potential before sending the results into portfolio construction. This creates a practical workflow where screening, forecasting, and position sizing work together instead of as separate steps.
In this template, Screener-N3 uses data types such as Solvency Ratio and P/B Ratio. Solvency Ratio is a high-level measure of financial strength that helps indicate whether a company can meet its obligations over time. P/B Ratio (price-to-book) compares the market’s valuation to the company’s book value (net assets on the balance sheet); it’s a quick way to see whether the stock is priced at a premium or discount versus its accounting equity base.
Together, these inputs give the screener both a balance-sheet strength lens (financial durability) and a valuation lens (how the market is pricing those net assets).
Screener-N3 is an AI model node that continually learns from new market dynamics instead of relying on fixed screening rules. Its role is to filter the S&P 500 toward stocks with stronger potential versus the benchmark.
The selected names are then passed to Forecast-N3, another AI model node, built for continual deep learning forecasting. Forecast-N3 focuses more directly on price dynamics and estimates near-term return direction and magnitude.
Chaining the two nodes is meaningful because they solve different parts of the problem. Screener-N3 helps reduce noise by finding better candidates, while Forecast-N3 complements it by analyzing price behavior and short-term timing. Those forecasts then flow into portfolio construction, where stronger conviction can translate into larger position sizes.
