You’ll either be using this technology to capture alpha or others will be using it against you to get theirs.
ENCINITAS, Calif. (PRWEB) November 01, 2017
The A.I. traded simulated portfolio for the period ending the Q3 2017 calendar year finished with a net return of 30% after fees and commissions. “Holly”, the name of the Trade Ideas Virtual Analyst, guided the portfolio before factoring in the commissions and fees to a gross return of 53%. By comparison, the S&P500’s SPY index gained just 13% over the same timeframe.
“This performance once again exceeds our expectations and confirms the enormous value our A.I. innovation brings to the investment decisions of our clients,” said David Aferiat, Co-Founder and Managing Partner of Trade Ideas. “A.I. enabled technology is growing in the capital markets with almost all of it to the exclusive benefit of fund investors. We’re not only making our own high performing algorithms available daily via subscription, but we’re leveraging Trade Ideas’ data processing and machine learning capabilities to process client algorithms as well. This is A.I. as a service for the buy-side and sell-side.”
The Trade Ideas A.I. managed simulated long/short portfolio is not a backtest, but rather is comprised of paper trades in North American equities markets. Every trade is picked by the A.I. from a list of strategies the A.I. has tested and optimized over the previous night. The nightly optimization and ranking of strategies is referred to by Trade Ideas as a “Quantitative Combine.” Holly’s simulated portfolio initiated with $1M on January 2, 2017 and trades roughly $80,000 of shares per trade. The commissions are factored in at $0.0075 and reflected in the net performance, illustrated in the attached chart. Slippage is not accounted for. For short trades, the system assumes broker access to short inventory.
To highlight individual trades picked by Holly the A.I., none of the trades are held overnight. This avoids any outsize returns from cherry picking winning picks to hold for longer periods. Detailed trade data is available on the Trade Ideas Professional Services website and can be segmented by time, market cap, and performance. Since January 4, 2017:
- Total trades: 2,896
- % Winning Trades: 56.4%
- Profit Factor: 1.62
- Sharpe Ratio: 5.56
- Benchmark Return: 13%
“The innovation of HOLLY as a Virtual Analyst shakes up the FinTech community. A.I. powered analysis trumps gut feel, a single data set, or indicator alone. This year has continued to exceed expectations of A.I. generated performance and FinTech innovation,” observed Dan Mirkin, CEO and Co-Founder of Trade Ideas. “You’ll either be using this technology to capture alpha or others will be using it against you to get theirs. We’re looking forward to finishing a second year of out-performance above the indices and for our partners in 2018 delivering better bottom lines and a better experience in the markets.”
About Trade Ideas LLC
Trade Ideas creates actionable market intelligence for institutions, advisors, and self-directed investors to make consistently informed decisions mitigating risk and capturing alpha. As a SaaS Fintech innovator for over 14 years, Trade Ideas leverages algorithms derived from recursive, Machine Learning, Artificial Intelligence to develop trade plans and ideas and produce statistically tested, optimized performance results. Trade Ideas' inputs include Big Data sets from U.S. and Canadian market feeds, technical, fundamental, and non-structured data sets such as news and social media. Trade Ideas' client base is from around the world totaling more than 8,000 with operations in the U.S., Canada, China, and Europe.
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