Algorithmic Intelligence in Financial Trading—What is All the Noise About?

According to David Stryker—a principal at consulting firm Greenwich Associates LLC, algorithms are going to be the next big thing in forex trading. Stryker believes that we will soon see widespread adoption of computerized and intelligent trading.

David Stryker is not alone in his admiration and praise for intelligent algorithmic trading. This type of futuristic computerized trading has been used for several years in equities and commodity markets.   The whole world is talking about technology and its impact on financial trading. What is algorithmic trading and why is it getting so much press these days? 

A fast-paced technology devoid of human emotions, algorithmic trading executes trading commands on the spot and with increased accuracy. Algorithmic trading has many qualities that human traders have yearned for long—speed, automation, and the ability to set rules for trades to name a few. Easy to use and execute, intelligent algorithmic trading is seeing many stakeholders jump on its bandwagon utilize computerized trading.

These include the following:

  • Individual traders
  • Retailers
  • Brokerage firms
  • Large Institutions
  • Multinational investment banks with high-level investments

Today, algorithmic trading is dramatically altering the trading scenario in many of the countries of the world. As a result, the “Algorithmic Trading Market 2025 Global Analysis and Forecasts” report predicts the Global algorithm trading market to double in the next decade.  Many will even consider these estimates to be very modest for how fast technology is growing.

The Problem with Current Algorithmic Trading and How It Can Be Solved

Many individual investors, trading companies, and brokers have been using algorithmic trading (also known as automated trading).  Most of the algorithmic trading happening today isn’t really ‘intelligent algorithmic trading’.  Algorithm strategies like these are focused on short-term gains.  They turn out to be too risky or a set of elaborate instructions and action workflows without strategy. Algorithm trading can be called ‘intelligent trading’ only if it can learn from past experiences, adapt to market conditions, and make trade decisions accordingly. 

iFlip, offers a truly algorithmic intelligent software that can identify risk and leverage stock trading automation to better avoid it. Trading bots are usually associated to the crypto market or high frequency trading. This trading focuses on short term gains, which means it’s not thinking far enough back and ahead.  To date, iFlip’s Algorithmic Trading Software has been developed managing over 4 Billion of wall street investment funds. It uses proven proprietary algorithmic intelligence (AI) to analyze, buy, sell or hold stocks to grow wealth for investor personal and retirement accounts.  It is truly intelligent in the vision of focusing on long term gains.

How iFlip’s Algorithmic Intelligence (AI) Works

The popular belief is that it is virtually impossible to predict the stock market perfectly. At iFlip, we agree to this as there is no way for humans to know the exact time of a stock market crash. However, we also believe that iFlip’s AI can protect investments by getting close enough. Our algorithmic intelligence (AI) software analyzes stock positions daily and based on the results of the analysis, it buys, sells, or holds stocks.

iFlip’s AI had a recent success at the end of 2018 predicting a negative 13.72% stock market drop. The system automatically sold iFlip’s positions in the S&P 500 (SPY) and saved customer investments from a steep drop.

Algorithmic trading is a growing trend in the world of financial trading. In conclusion, algorithmic intelligence (AI), is here to stay. Many will find that its ability to provide automated proprietary technical analysis and on-demand trading execution is a viable option for investing.

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Zero-dollar ($0) commissions are available for self-directed Individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices and via web interface. To obtain the commission and fee schedule, please see our website at www.iflipinvest.com. Note that certain Flip Investor Inc. Product features listed are currently in development and will be available in the near future. System execution price, speed, response time, liquidity, market information, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Some of the information provided show hypothetical results which may or may not represent live performance. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns.  Keep in mind that while diversification and the use of algorithms may help manage risk it does not assure a profit, or protect completely against losses, in a down market. There is always the potential of losing money when you invest in securities, or other financial products.  Investors should consider their investment objectives and risks carefully prior to investing.

Past performance is not indicative of future performance. iFlip data results assembled using various Flip algorithms applied to the equities listed on this webpage (if any). Results compiled for each equity and each algorithm assume a 10,000 initial investment beginning on Jan 1st 2005. All iFlip price assumptions are based on the opening price of each day as found in Yahoo finance. Yearly NAV data points compiled by compounding annual returns using standard year over year accounting. S&P500 results are derived using the SPY as a proxy. The data on this webpage is not intended as a solicitation. Always seek professional advice for suitability.