Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 09, 2021
Trading (and Cryptocurrency Trading) with the Help of Artificial Intelligence

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?

 

Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
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.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
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.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

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.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
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.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.