Why A.I.?

October 2, 2018

At Trade Ideas, we’ve been honored over the years to win several awards for our innovative approach to actionable market analytics for active stock traders, and we’ve been increasingly recognized for achievements in delivering Artificial Intelligence to retail and professional market participants.

Of course, to make sure we are given an opportunity for a proper review by the appropriate judging committees at the variety of awards shows around the country, we are often required to submit some supporting information.

As I submitted our latest entry, I thought the content of the submission is worthy of a wider audience. So, if you’re curious about how Artificial Intelligence by Trade Ideas can up your trading game, I offer you these nuggets direct from our application:

 

1. Why Trade Ideas’ HOLLY — the Virtual A.I. Assistant — should win this award:

Trade Ideas’ A.I. provides tested strategies designed to yield actionable market intelligence for institutions, advisors, and self-directed investors. The inputs for the algorithms are 15 years of historical derived data Trade Ideas creates from a diverse set of data including crowd-sourced estimates, technicals, fundamentals, and non-structured sets such as social media, news, and more. The results are specific alpha opportunities with detailed trading plan parameters to make risk-informed decisions. Vetted ideas are delivered versus hunted such that:

A) Self-directed investors improve their ability to ‘pull the trigger’ and reduce preparation time needed to form and test market hypotheses. They step confidently forward, ready to act, knowing that trades presented to them have a statistically significant edge to be acted upon and captured.

B) Financial advisors and fund managers find operational efficiencies delivering tailored, high reward opportunities to clients with appropriate risk profiles.

2. Technical Details of HOLLY

Trade Ideas’ innovation energy is focused on continually delivering better strategies to its subscribers.

As a SaaS Fintech innovator servicing self-directed investors, financial advisors, and fund managers for over 15 years, Trade Ideas leverages algorithms derived from recursive, Machine Learning, Artificial Intelligence (HOLLY) to develop fully formed trade plans and ideas with statistically tested, optimized performance results.

More than 70 strategies have been developed by our team of trading experts and fed into the AI. At the conclusion of each trading day, HOLLY runs backtests on each strategy and runs through millions of simulations to identify and adjust parameters for improving each strategy. The end result is a daily re-optimization of each strategy for best performance in the current market environment. Then, from its bucket of 70 strategies, the AI will select only a small subset (5-10 strategies) to be active on the next trading day based on the AI analysis of current and expected market conditions.

3. Specific Business Advantages & Benefits

Follow the outflows. A look at the huge migration wave of AUM from Active to Passive investment vehicles in the last 3 years reveals the level of frustration retail individuals and their professional proxies (e.g., active fund managers) experience searching for alpha. Many funds are closing and winding down.

High Frequency Trading, negative connotations of rigged casinos, increased volatility, and Black Swan events leave individuals and their advisors exasperated at stock selection of all but a handful of the most well known companies (e.g., Facebook, Apple, Netflix, Google, etc.) There’s more to the market than the indices and these familiar names. The market is replete with opportunities and verifiable patterns at different depths containing future Amazons and Facebooks.

Trade Ideas’ Virtual AI Assistant — HOLLY — is unemotional and unattached to the popular names of the day. Wherever there is alpha to be exploited and edges to be leaned against, HOLLY directs subscribers to these opportunities armed with a risk management plan, a profit target, and a piece-of-mind knowing statistics are on our side.

If you’d like to learn more about Trade Ideas AI — we call her HOLLY — head here.

~ @chicagosean