Artificial intelligence is an absolute game-changer for the stock market. While people still play a major part in trading—like understanding how to trade CFDs, stocks and currencies—artificial intelligence (AI) plays an even more prominent role. Studies have shown that electronic trades have accounted for more than 40 percent of revenues in cash equity trading. Although hedge funds are hesitant when it comes to automation, many of them use AI for investment ideas and building portfolios.
Wall Street investors have realized they can use AI to analyze millions of data points in real-time and get data that the current models just can’t. Here is a quick look at ten investment companies around the world that use artificial intelligence for more intelligent trading.
Kavout a company located in Seattle, has a product called K Score that is part of its Kai intelligence platform which analyzes massive blocks of data and also analyzes a lot of predictive models to come up with stock ratings. The company then recommends the best stocks every day using pattern recognition technology and price forecasting tools.
Auquan is a company located in New Delhi, India, that uses its algorithmic trading platform to help companies develop really good trading strategies.
As a result, Auquan’s clients are able to transform high-quality strategies into significant profit.
Epoque is a company that is located in Switzerland which has an entirely automated artificial intelligence tool which utilizes 3 engines for trading. One of the engines is used to analyze and observe potential trades, the second engine is used to create orders and perform operational actions, and the third is used to manage active orders and uses algorithms to improve its performance over time.
Located in Warsaw Poland, Sigmoidal is a consulting company that offers data science, AI, machine learning, and software development for business which includes trading.
In one instance its team of professionals helped create an investment strategy by building a smart asset allocation system that used artificial intelligence to predict every asset in specific portfolios.
EquBot is an affiliate of IBM that has an exclusive investment tool which links artificial intelligence with an active ETF (exchange-traded fund). By collecting and analyzing data gathered from several sources like financial statements, social media posts and news articles around the world, EquBot organizes the investment process to better understand companies, management, and markets through cause and effect.
6. Trade Ideas
Trade Ideas is located in San Diego, California and uses an AI-powered trading platform called Holly to perform millions of different trading scenarios on investment algorithms to raise the alpha level in future sessions. Only the levels with a success rate of more than 60 percent and a 2:1 earnings factor are given to traders the next day.
AITrading—a startup company based in London—scans the market for the best trading opportunities by combining AI and trading community to increase profits.
8. Imperative Execution Inc
Made up of skilled engineers, analysts, and traders, Imperative Execution, a company based in Stamford Connecticut, uses artificial intelligence to optimize trading of U.S equities by building useful financial exchanges.
9. Infinite Alpha
Infinite Alpha—a company based in London—uses artificial intelligence to assist in crypto asset trading. The company offers protection to trading experts through hardware security modules, encryption, advanced verification and more. By utilizing its intuitive dashboard interface, clients can easily access transaction histories balances and account details.
10. War of Attrition
War of Attrition intends to increase client profits by using artificial intelligence for real-time market analysis. The product is only available to select groups of clients including hedge funds, fund-to-fund, sovereign wealth funds, and ultra-high net worth people.