Using AI to automate investing


Part 1

In this three-part series, we will explore AI-powered investing, how it works and how you can leverage this cutting-edge technology to diversify your investment mix and improve your investment returns.

Financial markets are always in motion. Every minute of every day, millions of transactions worth billions of dollars take place. Each has the potential to tip markets in one direction or another. Keeping track of it all is near impossible, staying ahead of it is even harder.

Information Overload

Overcoming information overload associated with investing.

So, how can any asset manager possibly analyse all these transactions and how do financial professionals approach this challenge? Asset managers study a broad range of market data to make investments that generate alpha. For stocks, that historically meant interpreting financial information disclosed in company filings, macroeconomic data, industry trends and analyst reports — a full-time job in itself. And while market data remains the starting point, today it is just the tip of the data iceberg. Investors have to grapple with the inclusion of unstructured data such as tweets, fleets, stories and forums, all including data that needs to be analysed to make stock market decisions. Just look at the GameStop (GME) frenzy in February 2021, an event driven almost solely by posts on Reddit and other social media sites.

Since the turn of the millennium, this mass of alternate data has created incredible new opportunities and equally daunting challenges for analysing data for an investment portfolio. Internet searches, social media posts, satellite imagery, mobile app analytics, geolocation data and other alternatives lend to company and industry insights that help asset managers identify attractive investments. The smallest insight can give them that alpha they are looking for.

As the volume of real-time data increased beyond what is humanly possible to track and analyse, asset managers faced a huge challenge that continues to plague retail investors: information overload. In turn, their investment decisions sometimes suffer from bad timing, hidden risks, volatility and more. To overcome these challenges, financial professionals must turn to technology.

Democratising Finance Using AI

The finance industry is one industry that has been on the razor-edge of innovation, yet it is still one industry that is ripe for disruption. AI looks to be on the verge of disrupting the industry in a number of different ways, from robo-advisors, risk management solutions, online fraud prevention, automated trading systems, and more.

everyday investor frozen out of wall street

The everyday investor has long been frozen out of Wall Street’s biggest and best deals, not to mention the fact that access to data and research has remained prohibitively expensive. Zero brokerage fees are great, but they’ve brought with them a range of hidden costs and risky consequences.

Where does that leave retail investors? Once-a-resource intensive, prohibitively expensive and hard to come by, AI-powered investment solutions are no longer exclusive to asset managers and other financial professionals. In fact, a range of solutions is available for retail investors. Among the most powerful is Jaaims — a first-to-market fully automated trading app that connects to your brokerage account.

Outperforming the Broader Market with AI-powered Stock Insights

Jaaims empowers individual investors to overcome this information overload. Using AI, it analyses more than 10 million pieces of data from over 250 different news, financial data and social media sources in real-time, updating its stock recommendations every 15 minutes. In this way it transforms this mass of alternate market data into global stock market opportunities. And it does that faster than humanly possible. On average, Jaaims analyses a stock in just 73 seconds.

Once Jaaims is plugged into your chosen brokerage account, it also automates trade execution, constantly refining your portfolio to maximise returns. Your money never leaves your brokerage account, offering full transparency and maximum liquidity of your funds at all times.

Now returning 23.5%* on their Professional plan’s Smart Portfolio, Jaaims has evolved the traditional investing strategy to include the variance of human emotion through predicting future emotional trends using the power of AI.

While an old adage suggests that past performance is not indicative of future performance, Jaaims can help you to maximise your returns. Whether you are just starting your investment journey or have years of market experience, by harnessing the power of AI, Jaaims empowers you to invest like a pro.

Article featured in the Australian Financial review May 29 2021.

*All returns are net of fees and in AUD. Calculations are based on our monthly Professional subscription using our smart portfolio trading all markets covered by Jaaims with a starting fund of AUD$250,000, average position size of $5,500 per trade or 2.2% of funds. Trades fees are calculated utilising retail brokerage rates and multi-currency accounts provided by Interactive Broker. The calculation is from 1 July 2020 to 30 June 2021. Distributions are reinvested, after ongoing fees and expenses but excluding taxation. Actual performance will vary depending on broker selection, position size and stocks selected by the user. Past performance is not a reliable indicator of future performance and will be subject to investment risk as returns are derived from share markets.
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