AnalysisIQ - Automated - Product Overview

Our automated signals combine traditional Technical Analysis (TA) with advanced Natural Language Processing (NLP) and sentiment analysis techniques.

Background/Methodology

Our automated signals combine traditional Technical Analysis (TA) with advanced Natural Language Processing (NLP) and sentiment analysis techniques. By analyzing historical market data and news sentiment, it generates automated trading signals that outperform traditional indices. This AI-powered system aims to provide clients with precise and valuable trading ideas, empowering them to make informed investment decisions across various timeframes.

Key Features

• Advanced Technical Analysis - Incorporates cutting-edge Natural Language Processing (NLP) techniques and sentiment analysis, merging traditional TA with modern Data Science capabilities.
• Sentiment Data Integration - Utilizes sentiment data from news sources, integrating it with market volatility information to generate precise and sharper trading insights.
• Automated Signal Generation - Employs a thoroughly back tested strategy leveraging price, sentiment, and volatility data for each asset, creating automated trading signals.
• Daily Trading Ideas - Empowers traders with daily precise and valuable trading ideas, acting as a robust support system for investment decisions.
• Risk Management - Provides upper and lower bounds for each trade idea, along with Stop and Target Prices to restrict potential losses.
• Extensive Asset Coverage - Currently offers signals for 2122 assets, including components from well-known indices and cryptocurrencies.
• Data-driven Optimization - Live signal generation pipeline includes an optimization step to fine-tune parameters for maximizing revenue for each asset.
• Global Expansion Plans - Ambitious plans to expand coverage to include a broader range of equities from around the globe, commodities, and foreign exchange (FX).

Assets Covered

We currently offer trading signals for 2122 assets, including components from indices such as SP500, Russell2000, EUROStoxx, FTSE100, NASDAQ100, and Cryptocurrencies.

Timings of analysis

Signals for assets are published on open-market days before the market opens. 

• 8am UTC for European markets
• 12pm UTC for North American markets. 
• 12pm UTC for Cryptocurrencies.

Each trade idea includes an entry range determined by our optimal entry level. We calculate a price range of 1% above and below this level to provide a clear trading range.

Expiries

Trade ideas will remain ‘Live’ until either the trade either reaches the stop loss or the take profit level.

It is possible to have multiple open trades on the same asset.

As a part of our risk management approach, we make sure to close trades at the right time. Typically, a trade lasts around 30 days from the market opening, regardless of whether it's a short or long strategy. However, it's important to understand that this average can differ for each asset, depending on its market conditions. The image below shows the average trade length distribution for different asset types. Cryptocurrencies generally have shorter trade lengths, while some assets may occasionally have longer durations due to unique market price movements.

Performance

For performance calculations, trade ideas will be closed at the point that the asset reaches the stop loss level or the take profit level. 

To confirm the effectiveness of our product, we compared the historical performance of our live signals with a standard buy-and-hold approach. Our live signals consistently outperformed the baseline, demonstrating the effectiveness of our sophisticated strategy. 

We also focus on managing risk by setting upper and lower bounds for each trade idea, along with Stop and Target Prices to limit potential losses. While not all trades are successful, the revenue from profitable trades outweighs the losses from unsuccessful ones, resulting in overall profitability.

AI-powered signals cumulative returns versus the cumulative returns from a buy-and-hold strategy on the different indices prices.

How we measure performance

We prioritize transparency and integrity in our operations, striving to present a balanced view of our analysis performance, including both successes and setbacks. We acknowledge the challenges of successful trading, which demand a range of skills and emotional discipline. By openly displaying performance statistics, we aim to provide a realistic view of trading outcomes. Through evidence-based methodologies and comprehensive testing, we believe our approach can empower even novice traders to achieve profitability.

For more information on the performance statistics click here.

Risk Warning

The simulated performance statistics provided are based on the assumption of risking 1% of trading capital per trade. It is crucial to understand that past performance, whether actual or simulated, is not indicative of future results. Trading involves substantial risk and is not suitable for every investor. The figures presented are hypothetical and do not account for real market conditions, such as liquidity, slippage, or transaction costs. You should be aware of the risks involved and be prepared to potentially lose your entire investment. Always seek independent financial advice before making trading decisions.