| Intrust will replace traders with artificial intelligence The financial company Intrust has developed an automated trading system, which it intends to offer in the near future to clients operating in the stock market. The potential range of consumers of the new product are institutional investors, pension funds and insurance companies, as well as individuals cooperating with the company on the basis of trust management agreements.
The idea that inspired the project is simple: current stock prices depend on many factors and seem unpredictable, but at a particular point in time there are a small number of the most important factors that determine price behavior. By owning the appropriate analytical apparatus, you can achieve success in the stock market, at least in the long term. This approach has long been used by American funds and is called program trading. However, human psychology is not always at peace with pure mathematics. Even an experienced trader who has all the necessary knowledge is sometimes unable to stay away from the speculative excitement that reigns in the market. A decision made in an emotional outburst often turns out to be wrong. In addition, a trader, like any other person, can be temporarily distracted from what is happening on the market and miss an advantageous moment to make a transaction. By giving the right to make decisions to a computer armed with modern methods of analysis and possessing iron discipline, the developers from the Intrust company reduced possible losses associated with the human factor, and also minimized general market risks due to the speed and volume of analyzed information, inaccessible to even the best analysts.
The new trading system was developed by the Intrust company based on the identified patterns in the behavior of quotes of one or another stock from among the most liquid. If the direction of price movement is “correct”, corresponding to the model, the open position is preserved, and if it is “wrong”, it is closed due to a strict limit on the amount of loss. Thus, over a long period of time, the amount of profit from successful transactions exceeds the amount of losses from “erroneous” ones. The trading system has been switched to automatic mode: the signals generated by it are implemented by computer means in the operation of buying and selling shares through the exchange terminal.
While limiting the human factor at the stage of operational portfolio management, the trading system offered by Intrust nevertheless does not limit the individuality of the client himself, who, by the way, gets the opportunity to use it absolutely free. At his request, the trading robot can be configured both in accordance with the standard portfolios offered by the company to the client, and based on his personal preferences. At any time, an investor can check the current state of his portfolio and view all transactions carried out on it, which makes the process of managing his funds completely transparent.
According to the developers of the new automated trading system, it allows us to resolve the contradiction that frightens investors between the high profitability of the Russian stock market and its high risks. By minimizing a significant part of the risks and formalizing the process of making investment decisions, the system still preserves for the user the opportunity to receive income higher than in other segments of the financial market. Especially if the investor has “long” money.
However, having entrusted the current management of money to trading robots, the Intrust company is still not going to refuse the services of human professionals. Traders freed from the daily grind will focus on more important matters: making strategic decisions, assessing critical market situations and ensuring the proper functioning of trading robots. Ivan GORDEEV |
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