Artificial Intelligence, Machine Learning and Big Data. Unless you have been living under a rock, you would have heard these terms mentioned a lot in the last few years.
But what real-world applications do they provide?
Self-driving cars, brick-laying robots and even Siri to help navigate your way through the day with ease.
But what about the investment and trading community?
They have already decided that artificial intelligence can diagnose certain cancers better than the world’s best doctors. A doctor may see 10,000 cases of certain cancers in their lifetime whereas a robot can view 1 million cases in no time at all.
Humans cannot compete with machines when it comes to crunching big data.
Since the investment game is numbers based, it puts robots squarely in our court.
In this article, I will run through 8 new online software programs that are crunching huge amounts of data and using artificial intelligence to drastically reduce the time spent analysing the markets.
The machines are taking over, so you might as well embrace what they have to offer and boost your investment portfolio at the same time.
You have no doubt heard about the importance of backtesting your trading ideas. You’ve checked out Metastock, AmiBroker, TradeStation, eSignal and NinjaTrader but struggle to pick up coding at any level.
Enter Capitalise.ai. Capitalise can turn your words and natural language into code to backtest your trading ideas. Also, it can use your words to execute your trading systems directly into the market.
It will also create a portfolio of investment strategies and manage your entire strategy in real time without you having to lift a finger.
They can even run optimisations against your trade ideas so you can see how they may have performed.
One thing you may have noticed by reading Jack Schwager’s books with the best traders of all-time is their mathematical background. Many studied engineering or science and work very well with numbers.
This puts the mathematically inept people at a slight disadvantage. Until now.
Algonell’s main motto is ‘Trade like a scientist’. Algonell uses big data and machine learning to create sophisticated trading methodologies the mere mortals could only dream about.
Humans are great at recognising patterns but struggle at interpreting the endless stream of data available nowadays.
Algonell absorbs the data, processes the vast amount of information and identifies actionable trade ideas across global markets.
- Meteo Logic
Many traders will tell you their love for the futures market. They talk about the transparency and fairness of it. You may have read Ray Dalio’s latest book called ‘Principles’ to hear of his commodity trading background and his ability to crunch data to develop smart trading ideas.
Meteo-logic.com uses state-of-the-art weather prediction models coupled with big data and machine learning to identify commodity trading opportunities.
They suggest their analysis can provide actionable market predictions for the days and weeks ahead.
Have you ever heard anyone say ‘All analysts are hopeless. I can predict moves in the stock market much better than they can.’
Well, now there is a tool that aggregates all the leading analysts’ buy and sell recommendations in the one spot. You finally have the opportunity to prove them wrong and fade their analysis. Perhaps you could use their ideas as a strong reversal signal.
On a more serious note, Tipranks.com allows you to enter the name of a stock (unfortunately it doesn’t work on ASX stocks) and see the price projection level of all analysts visually.
A quick scan of Microsoft shows 90% bullish with a price projection from $49 to $90.
TipRanks also pulls in blogger opinions, corporate insider activity, news sentiment and hedge fund activity all in the one page. You may find yourself returning to this site frequently to run your fundamental research.
- Option Samurai
For those of you who love trading options, you know how difficult it can be to identify opportunities across the US stocks.
Option Samurai can crunch a huge amount of data and shortlist option trading ideas which provide you with an edge.
They have some predefined screens allowing you to save time and get the opportunities you are seeking.
Regardless of whether you prefer to buy or sell options, they can calculate the payoff curves and potential risks of each trade.
Also, they have an implied volatility percentile calculation and rank each stock on a score of 1 to 10 regarding ideal option trades.
- ASX SwingTradeBot
You know you need to crunch data to get to your decisions. But how many software licences have you bought that just sit there on your PC?
SwingTradeBot is more than just swing trade ideas. In fact, they analyse seven global markets and scan all the stocks for 38 different technical and fundamental criteria.
You can shortlist stocks that are consolidating, breaking out, basing, showing strength, swing setups, 52 weeks hi/lo, candlestick patterns, gapping up or down and so many days up or down in a row.
You name it; they likely have a pre-built scan highlighting all the stocks meeting your ideal criteria.
But I hear you saying, ‘Entry isn’t that important. I need to know when to exit.’ Well, guess what? They have that covered too. Their trading bot will help identify exit points for you as well.
Imagine having a trading coach. Someone with experience who can guide you along your ever-changing trading journey, watching your every mistake and honing your talent and focus.
Do you think you would become a better trader with a real-time trading coach?
What about a robo-trading coach? Someone with millions of historical tendencies and behavioural biases all coded in, eager to provide warnings at your key times of weakness.
If you trade the Forex market, PsyQuation will help you plugin your MT4 data and will immediately start providing trading insights and coaching for you.
Also, their algorithms assess and rank your trading skill level and provide a clear path towards trading success.
If you have a dangerous trading history or strategies which throw caution to the wind, PsyQuation is the always-on trading coach there to point you in the right direction.
News trading is fast, volatile and action-packed. If you love trading news events, then BetterTrader could be your guiding light and an emotion-free ticket to research-based news-event trading decisions.
BetterTrader.co can interpret economic data releases in real-time, giving you strategic trading ideas based on historical research. But fast.
Ever stared at your computer screen when the non-farm payroll data hits and thought ‘What happened last time it was down this much against the higher expectations?’
Well, your memory can take a back seat now. BetterTrader not only crunches the key economic news releases but also provides a very clear visual trade confirmation screen.
You will be able to cut down the ‘noise’ and gain clarity over your event-based trading decisions once and for all.
If the economic calendar is your number one website resource, then get ready for an economic calendar on steroids.
Over to you. If some of these services resonate with your trading style or you feel they could save you time and help boost your portfolio, then be sure to check them out.
Ashley Jessen is the author of CFDs Made Simple and runs LearnCFDs.com. Ashley is the CEO and Co-Founder of ProfileBooster.com.au, a company dedicated to helping finance and professional services companies drive more leads, convert more sales and boost their authority through intelligent PR, content and media distribution.