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Different trading and investing styles

I’m fully aware of the basic fact that every trader and investor has it’s own style. Many school of thinking, but everyone is really different, particularly in the private sector. If a private trader survives the first 18 months without being wiped out, then she/he may have the possibility to play on. It’s a sad and real statistics: 95% of traders are wiped out in the first 12-18 months of activity. So, if you are a private trader since years, you are in the 5% and you have built your skills with iron and steel, it’s not easy to approach a new language.

In effect, a.i. tools are very comprehensive: the result is there, fast, precise, direct. You just have to pay attention, when required, then to act if necessary. The whole decision process that makes the foundations of a trading system is questioned. It’s not an easy process, it will not be.

 

Mind changer about traditional tools as t.a.

Artificial Intelligence tools, not only r.Virgeel, implies that you change your mind about the instruments of analysis. Are you there with any of the technical analysis tools, or with a realtime CFD, you plot your oscillators, you backtest an optimal setting and decide, based on a unique line of data and a monodimensional analysis. A.I. can analyze many different correlations concurrently, sorting out with surprising results. It is obviously different, it is much different.

If you are totally unaware of a.i.. and neural networks, you do not need to read huge books to understand. You use Excel, for sure. Read this, then it will be easier. Made simple, supercharge and megapower a spreadsheet and you have a neural network. Then you have all the a.i.: image recognition, diagnostic, speech recognition, text recognition, and you name it. Once you understand the brick, then the wall makes sense.

The fact is that an a.i. robo-advisor makes the dirty work for you. Collects data, builds tables, generates logic, connects correlations, normalizes the resulting cloud of data and generates the output data. Whooo! All in one. And it’s fast!

Low adrenaline, stress reducer

People love adrenaline, excitement and, basically, confusion. In the long term, this attitude generates deep stress, that reflects into bad behaviours. If you are a few minutes ticker trader, r. Virgeel is not for you, probably. Well, as it  gives a daily trend, it may help, but…

Once you have a good robo-advisor, you need less to have opinions about everything. It monitors the data, it makes the loops, it builds the report. You must trust it, follow the suggestions and pull the triggers. Stress is highly reduced. Instead of needing to have an opinion about everything, you just have to evaluate a very well documented “opinion” generated by the a.i. model. You know, I like to say, it’s different.

For what I can see, robo-advisory is taking shape as large (and expensive) premium sites with a large choice of instruments, with applied different forms of analysis and previsions. I argue that the neural analysis is often simplified and this can be a good thing, overall. In other words, these sites offer a large set of instruments and an automated training.

Here at spxbot it’s a completely different music (well, it’s a premium site, but it’s cheap). First, just one instrument – the S&P 500 – here. Then, the correlated instruments are hundreds, to represent the global finance world. All for one, we may say 😉 More, r.Virgeel is highly deparametrized, meaning that it work by brute force and not by rules. Finally, r.Virgeel is trained “personally”, bar by bar. Total human supevision on the training of the model. You know, it’s always the same old story: you put rubbish in, you get rubbish out.

 

 

 

 

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