what is the based of this AI trading analysis. can you explain how the program working. thank you
Hello! Thank you for your question!
The main task of AI is to reveal trading ideas and new regularities (including new chart patterns) on the market.
AITrading screens all financial data across the world in real time. The data from various sources feeds into a central server, where it is analyzed by our AI engine for patterns, relationships and regularities. The server
automatically detects the significance of the revealed trading idea and its relevance to system users. In addition, it tracks community interactions with the data, creating additional proprietary metadata of
traders’ behaviours. AITrading’s approach to finding the trading ideas is to unleash a huge number of “agents” on the incoming data. Our “agents” have been trained in historical data to find ideas that are statistically significant. Trading ideas can be of various types. AITrading firstly shows trading ideas that fit specific needs of an individual user basing on his/her previous behavior. As the system learns more about the user, ideas are
sorted more effectively. AITrading technology will analyze not only the market data, but also the community's reaction to it. It will use a Bayesian approach to combine the two into a sophisticated model of the market, where market signals interact in a complex way with the community, and expectations are as important market drivers as the prices.
AITrading will provide members of its community the ability to search for trading ideas and to prepare investment decisions based on AI, mainly by:
- 24/7 discovering hundreds of new trading ideas and regularities through extensive monitoring of trading activity, identification of known trading patterns, revealing new trading patterns and quantitative analysis. It will then rank and firstly suggest the most relevant ideas (supported by visual instruments like support lines or trend lines) to a user considering his/her preference and risk tolerance.
- Using non-traditional Big Data sources such as “sentiment data” for AI-based analytics among other sources of traditional technical and fundamental analysis.
- For each trading idea, developing (through an AI-based engine) and suggesting a set of appropriate trading strategies given the user’s chosen risk/reward profile. A user just needs to choose any of them, evaluate it using backtesting (check how this strategy works on historical data), and follow the accepted one.
- Helping in building investment portfolios and suggesting additional instruments to each user sorted according to his preferences and risk/reward profile.
- Offering access to the AI-engine analytical functionality (AI-as-a-Service or “AIaaS”) to traders or third party providers (“B2B”).
AI works in an alliance with human brains in AITrading and it gives an outstanding synergy. Human analysts educate AI and AI helps humans with its analytics to reveal ideas and dependencies in fields where human brains are more flexible.