Not long ago the idea of AI Trading would have been reserved only for the giant hedge fund or an HFT Trading group. AI trading has now reached the retail trader and could be the one thing that helps level the playing field. Hedge Funds have bought in since 2010 AI Traded funds have outperformed the field.
AI trading has also made its way to the asset management world. Robo-Advisors like Betterment and Wealthfront have seen incredible growth over the past few years by offering the public a simple and inexpensive advisory product. These companies have an AI robot questionnaire that gauges the person’s risk profile and age and places them in an appropriate fund. All of this is achieved without any human intervention. QPLUM is a robo-advisor that takes AI Trading to a whole new level. They not only offer the typical profile of the client, but they customize the portfolio for each client based on deep learning and data science. Things like portfolio rebalancing which is typically done annually or semiannually are done daily at QPLUM. They have also developed a trading algorithm that can reduce cost and risk at the same time.
AI trading has also made its way to the trading public. HiHedge offers a pure AI driven strategy that has zero human intervention. Trade-Ideas provides a trading software that gives recommendations based on 35 existing strategies. The system will also assets the risk of the trade and provide full performance analysis. The company claims returns of 52% generated from their investment discovery portfolio. Trade-Ideas charges $3.90 a day for their standard plan and $7.50 a day for the premium one.
These products now offer the retail trader/investor tools that can help them compete and get the returns of the larger institutional players at an affordable cost.