Trading is one of the easiest activities around: few seconds and you are in position, few seconds and you are out of your position. Making it profitable is a totally different discourse. Libraries are plenty of technical and fundamental analysis books and the internet is plenty of websites that offer amazing returns. All of them (except some you can count on one hand’s fingers) do the same one dimensional analysis, based on the tape, the fluctuating price of the chosen instrument. The variety of tools available is confusing, but basically they all work on moving averages and momentum, sometimes volatility. So, you have, basically, one dimensional analysis based on momentum. And you lose money.
Two very common profitable trading techniques are insider trading and front running. Both are illegal, and you must be inside the financial business to be able to put them in practice. And if you are not, are you aimed to be stripped? Probably, yes.
Today, artificial intelligence offers an edge for common investors and traders: opposite to the plethora of tech analysis software, it makes a totally different analysis, it needs years to be developed proficiently, it sees things that the human eyes cannot see.
Here at spxbot, I have taken this totally different approach: the model crunches long term data from dozens of different inputs, and when I say dozens I really mean an approach that is impossible for a human to even imagine. The daily model, that forecasts the daily time frame, has 87 basic inputs, at the moment, that cover almost every aspects of the financial markets: stocks exchanges, commodities, rates, bonds, metals, currencies. The world spins and the data gets in, then the data is prepared for the model, trained, tested, verified… well, it’s a long process, but computers are fast and after years of development the code is well fitted. After data preprocessing, we are talking of a “brain” with millions of neurons at work.
What sorts out is stunning, something that makes momentum trading appear as old as a sumerian cuneiform clay tablet. Artificial Intelligence is able to recognize real patterns inside the market hidden (and evident) disorder and give back an unbiased, unemotional reading of the future events. Believe it or not, A.I. can snoop incoming events, in advance. The spxbot model is designed to be adaptive and responsive, and built to accomplish its tasks without any human opinion intervention.
Leave a Reply