Los Angeles, CA – After 4 years of Research and Development, Stock Circles announces an Artificial Intelligence Breakthrough in Stock Investing. "Today we are pleased to announce that Smart Auto-Trading, the first stock investing trading platform to use Artificial Intelligence natively to screen, monitor and auto-trade the S&P 500, yielded conclusive test results by consistently outperforming the benchmark by 2X for the past 2 years" says Jana Clemons, Stock Circles' CMO. According to Clemons, the technology does not make use of traditional Technical Analysis to trade stocks. "Instead, it uses Behavioral Sciences, Machine Learning and Statistical Models to screen, monitor and auto-trade the S&P 500 ". "Stock Circles started verifying the hypothesis that Artificial Intelligence stock investing would produce a higher return than the S&P500 in 2014", says Clemons. "To test the hypothesis, we had to build an entirely new kind of trading platform designed to ingest and process multiple, non- traditional data sources to extract actionable information".
Naoki Nagai, a 36-year-old Harvard graduate who grew up in Japan, is a one-man hedge fund. For the past 16 months he has written hundreds of algorithms in much the same manner as quantitative traders in the City of London or Wall Street. But, rather than trade from a Canary Wharf skyscraper or a Manhattan boutique fund, he does so from his home in Honolulu. In August 2006, Nagai left his job as a management consultant in Tokyo to establish a translation company, which over the next few years began to thrive. The success of his organisation, and the fact it wasn't dependent on location, gave Nagai the opportunity to reconsider his lifestyle. He chose to move from Japan to Hawaii. With its appealing climate and laid-back lifestyle, Honolulu seemed a great place to raise a family. Nagai and his wife arrived in the US in January 2014.
Demand for non-equity trading algorithms serving institutional asset managers and retail investors is expanding the prevalence of artificial intelligence in the world's financial markets. A recent report by Thomson Reuters estimates that algorithmic trading systems now handle 75 per cent of the volume of global trades worldwide and this figure is predicted, by those in the industry, to grow steadily. Firstly, while the institutional market has enjoyed a large variety of "algos" serving the equity markets to date, other areas such as futures are still witnessing huge product demand and innovation as a result. Secondly, regulations affecting the institutional investment market, such as the European Union Markets in Financial Instruments Directive II or MiFID II, are pushing for greater automation of trades in some asset classes which traditionally were not executed electronically. The fixed income market is a prime example and negotiations between industry groups are ongoing as to how practical a fully automated fixed income could really be, given the magnitude of the required shift from telephone to electronic trading.
Gone are the days of a room full of traders frantically executing trades trying to follow volatile market. Computer algorithms are the technology that shape the market today. Up to 70% of all trades in the United States are now performed by machines and not humans. While algorithmic trading is continuing to grow, the technology keeps improving as well. There are a number of significant technological advancements that are already being implemented and may become a part of the near future in trading.