Edward Flores's Avatar
published in Blogs
Feb 09, 2021

Trading (and Cryptocurrency Trading) with the Help of Artificial Intelligence

There are two ways to think about AI’s role in cryptocurrency trading. The first role is seeing AI as a tool that investors can use to trade smarter, to trade faster, and to trade based on more data. The second role is related to the first, but not necessarily in a good way – AI could potentially shrink the size of the asset management/hedge fund business, by taking the jobs of thousands of data crunchers and analysts who would technically no longer be needed. By some estimates, AI is set to replace 90,000 asset management jobs and 45,000 sales and trading jobs by 2025.

Let’s start with role #1 – AI being a revolutionary tool to help investors trade. There is already evidence showing that hedge funds that have integrated AI into their trading platforms have seen a boost in performance. To give one example, the hedge fund Renaissance Technologies has integrated AI into their platform and has seen dramatic results. Their Medallion Fund is a prime example, as it has delivered positive returns between 20% – 98% from 2002 to 2016. During the 2007-2008 financial crisis, the Medallion Fund delivered annual returns of 85.8% and 98.2%, respectively, which is nothing short of remarkable performance given the S&P 500 was down over 40% during the same period.

This is great news for hedge funds, but what about retail investors? Until recently, retail investors have not had easy access to Artificial Intelligence or algorithms to analyze data or furnish trading ideas. The landscape is changing quickly, however. Tickeron is one of the first – if not the first – company to offer AI to the retail investor. They have developed algorithms that can scan the market to identify patterns and trends, and the AI will deliver backtested statistics, target prices, and trading ideas right into investors’ inboxes.

 

 

But that’s not all. Investors can also customize the AI tools to search for specific asset classes like stocks or cryptocurrencies, and can also tweak the settings to look for certain types of technical trading patterns and “confidence levels” for the AI. Indeed, the AI has some trades it is more confident about than others, based on how good the data is.

The second role for AI is as a super analyst within hedge funds and asset management firms. Back in the old days (not really that long ago, actually), traders physically went onto the trading floors to buy and sell stocks, bonds, and commodities, and maybe from time to time rebalance their portfolios. That was that.

Today, high frequency trading and a constant flow of information make hedge funds and asset managers much nimbler in their trading strategies, which much more dynamic investment strategies. Fueling these new trading strategies is AI, with computers and machine learning applications that can consume mountains of data and help managers execute precise trades. AI helps these shops trade in conventional securities and has helped add liquidity to the equity markets, and many think it will soon bring all of the same benefits to the cryptocurrency world as well.  

With these developments in the hedge fund space, we once again arrive at the question – what about the retail investor? Will he or she also have access to AI for cryptocurrency trading? The answer is similar to the one I gave earlier: Tickeron is developing the technology to give retail investors access to AI for trading in cryptocurrency markets. Will you be a part of it?

 

John Jacques's Avatar
published in Blogs
May 16, 2022
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Edward Flores's Avatar
published in Blogs
Apr 29, 2022
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Sergey Savastiouk's Avatar
published in Blogs
May 16, 2022
When Is the Next Recession Coming?

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However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Sergey Savastiouk's Avatar
published in Blogs
Mar 14, 2023
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Dmitry Perepelkin's Avatar
published in Blogs
Mar 14, 2023
5 Habits that Lead to Successful Investing

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders.  Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.
Allana's Avatar
published in Blogs
Mar 23, 2023
What’s the Difference Between Data Analytics and Machine Learning?

What’s the Difference Between Data Analytics and Machine Learning?

Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.
Sergey Savastiouk's Avatar
published in Blogs
Mar 13, 2023
4 Tips for Fast, Effective Stock Analysis

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With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence.  Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.
Sergey Savastiouk's Avatar
published in Blogs
Mar 20, 2023
5 Golden Principles in Investing

5 Golden Principles in Investing

You have enough faith in that stock, based on research, that the return will equal or exceed the investment.  Do unto others.The principles outlined here will ensure that happens.  Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.
John Jacques's Avatar
published in Blogs
Mar 24, 2023
If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.
Sergey Savastiouk's Avatar
published in Blogs
Mar 15, 2023
The five most important Lessons Learned After 10,000 hours of Trading