The act of trading involves making decisions on transactions with assets in order to make a profit. Technical analysis is based on statistical data, past market behavior and reactions. Quantitative trading strategies are based on analysis that relies on mathematical computations in order to identify trading opportunities. Artificial Intelligence (AI) is the whole collective conception of a computer being able to think like a human. Machine Learning techniques are statistically driven and have been used by quantitative trading for a long time. In this post, you will learn about an artificial intelligent quantitative trading robot called Royal Q.
Therefore, artificial intelligence is used in order to search through the data and analyze it with aim of discovering market patterns. Quantitative trading can be enhanced by machine learning techniques due to their excellent predictive abilities. Machine Learning is most effective at improving parts of the trade life-cycle process, such as data processing and modeling, forecasting and signal research, risk management and execution.
What is Artificial Intelligence?
Artificial Intelligence, commonly known as AI, is the process of creating an artificial intelligence system capable of learning and adapting. It is achieved by inserting learning rules into the machine’s software in order to allow it to obtain knowledge and then identify and produce responses based on that knowledge. Additionally, the context in which the machine understands the information becomes important. For instance, machines can understand information based on the historical data they receive, while the software is better suited for situations based on the actual scenario of future events. Lastly, the task of AI needs to be separated from the architecture and system design.
The Rise of Quantitative Trading
According to research from the Oxford Internet Institute (OII) which was conducted between July 2015 and June 2016, the Internet carried out over 200 million trade and raised the amount of traded Bitcoins in 6,000 months. Overall, the monetary value of traded Bitcoin was almost $100 billion. The first exchange was created in June 2010 and the first Bitcoin futures are set to debut on the CME later in December. In the same research, 82 percent of traders believe that AI will be able to increase the volume of trading and give traders a competitive edge. With all the significant applications of AI, its importance is continuously increasing. The research has found that 45 percent of the quantitative trading institutions have increased their investment in AI in recent years.
How Machine Learning Works in Quantitative Trading
Machine learning algorithms are used for making decisions and classifying elements based on the information provided by the data. Their goal is to obtain the most accurate predictions using the past to improve on its prediction accuracy. This is done through Artificial Neural Networks (ANN) which are large computational machines. When there is insufficient data to make a decision, they use very simple rules to make a prediction, and will either satisfy or fail with these. Enabling autonomous trading to ensure that decisions are made quickly, the quantitative trader has to be concerned with the opportunity cost of failure. The limits to trading losses in trading programs are set to keep risk below unacceptable levels.
The Benefits of Artificial Intelligence in Quantitative Trading
Artificial intelligence can reduce human errors in a variety of trading processes. A robot will never forget important information that it is presented with. A machine learning algorithm will more accurately model the human tendency of thinking. The AI can often handle billions of data points with the most rapid analysis and minimize the chances of human error. Furthermore, artificial intelligence may be useful in order to mitigate bad market signals. A pre-programmed system that is a part of a fully automated trading system can replace human intuition. For example, some traders choose not to implement a human investment expert as much as they are interested in the idea of using machine learning as an alternative.
An Example of Artificial Intelligent Quantitative Trading App
Royal Q app has built-in powerful quantitative functions and industry-leading quantitative strategy models that support multilingual international version switching. And it is also the first quantitative software app on Apple’s App Store and Google Play. Royal Q digital asset AI intelligence quantitative tool API one-click configuration trading strategy; the support access mainstream exchanges Huobi, Binance and other hundreds of trading pairs.
Easy to achieve 7×24 hours automated trading press control team reducing systemic risk. Royal Q quantifies the advantages of Margin Times Investment and Smart Grid – the self-developed trading strategy through personalized parameter settings. AI data intelligently tracks extreme market conditions such as opening and closing profits preset activation, one-click replenishment and anti-waterfall make quantitative trading arbitrage more convenient and efficient and truly achieving a new era of liberating hands.
Users can create a circle to become a circle owner with one click share their own trading strategy and enable synchronous strategy copying and earn copying income and open circle chats to communicate directly with fans.
Royal Q quantitative app supports the Basic Edition and Professional Edition trading areas. Users with rich trading experience can open the Professional Edition trading area through the risks has to meet the diverse needs of users with different trust types.
Royal Q online customer services are online 24 hours a day 7×24 hours to meet the consultation needs of users in different regions and countries and achieve answer all questions deal with them in time and serve every user carefully.
Nowadays, there is a great deal of interest from the financial world to take advantage of AI, because of its potential impact on the financial industry. As every intelligent being is the culmination of millions of years of continuous evolution, artificial intelligence is not only a tool but also a mindset and strategy to improve financial trading. Before you can start trading with this artificial intelligent quantitative trading robot called Royal Q, you need to set up your accounts on Huobi and/or Binance exchanges. Afterward, click here to get started with Royal Q.