Artificial intelligence is widely used in top financial institutions, retail traders need to keep up
This article will cover the different pieces of software retail traders should use in their analysis. The top investment funds use tech so why wouldn't you?
Artificial Intelligence & Neural Networks
More and more research is cropping up about Artificial intelligence, it's all over the news. Not only is it used in everyday life such as in your smartphones but it is also used by top financial companies to gain an edge in the financial markets. But, why is it so useful?
Artificial intelligence & Neural networks combined have many benefits these include:
Create professional intuition (removes bad biases and keeps good ones)
Removes emotion from trading
Saves time in analysis
Ability to analyse mass data
Accurate stress test results
Accurate Strategy results
and much more..
Let's say you follow a simple trading strategy and you wait for stochastic oscillators to overlap. Instead of waiting all day for this to happen wouldn't it be useful to be notified on your phone or on your computer when this happens? Of course it would! Who wants to be staring at charts all day. Instead of spending 14 hours of the day waiting for an signal, you are identified instantly when there is an opportunity all through automation.
Let's now say there are 1000 pieces of economic data in excel sheets to analyse, as a retail trader you don't want to manually go through each one right? Artificial intelligence and neural networks can easily do this for you. This is why the Logic Strategy is leading the retail trading industry in analysis, it takes into account over 500 pieces of economic news and uses artificial intelligence, neural networks and genetic algorithms to come up with economic strength based upon fundamental data.
Currency Strength Meters
When Forex traders come up with their trade ideas a preliminary step should be to identify which currencies are weak and which are strong. This can be difficult to do using charts as it requires the trader to go through every single chart for a currency.
What currency strength meters help fast track are currencies which are weak and strong. These are the best opportunities for Forex traders to generate ideas from as currencies are traded in pairs. In the Chart above we can clearly see how JPY is strong and EUR is weak. This helps us either support a trading idea for a short in EUR/JPY or even help generate a trading signal if we didn't realise this in analysis.
The Logikfx Advanced Currency Strength Meter (ACSM) uses an easy to use bubble chart which is much more digestible than line charts scattered around. Here we can easily see the currency and their strength or weakness.
Why use Currency Strength Meters:
Fast track identifying weak and strong currencies
Support a trade idea you already have
Create new trading signals from the weak and strong currencies
Identify shifts in strength from neutral currencies
Candlestick Strength Meter
How did you learn which candlesticks have higher chances of reversal? Was it Babypips? YouTube videos? Educators? All these sources of candlestick strength have no proof that certain candles mean something has a better chance of happening afterwards. Let's say for example you were told shooting stars have a higher chance of shorting after they are formed. How do you know this is actually true?
Candle stick strength meters are cutting edge financial market tools used to identify the true strength of a reversal after a candlestick has formed. They use machine learning and neural networks combined with many years of candlestick data to come up with which candles perform the best. Therefore, it helps you the retail trader know which candlesticks to look out for the most.
You don't need a candlestick cheat sheet when you only need to focus on the candlesticks that perform the best. Use cutting edge software like the Reversal Candlestick Strength Meter provided by Logikfx financial engineers.
Commitment of Traders Analyser
If you are already a Forex trader or started to learn about Forex you may already be familiar with the term COT or Commitment of traders report. You probably didn't bother working out how to use the report because it was so confusing and difficult to digest right? That's why Logikfx provide Commitment of traders analysis which simplifies the report on a weekly basis to help you the retail trader follow the smart money.
All top hedge funds, asset managers and investment funds need to declare their positions to the CFTC. Wouldn't you want to know how the professionals trade?
Using the Commitment of traders analysis you can identify:
True market sentiment
Where hedge funds are positioned in the market
Where the big banks are positioned in the markets
When there is an opportunity for swing trades
Who to follow with your trade
and much more
To keep up to date with education, analysis and research head to our info centre.