Trade Ideas Senior Market Strategist Discusses The Development Of AI Assistance In Market Strategies

What would it take to produce AI-driven trade ideas on a daily basis?

That’s the idea of Trade Ideas. Founded in 2002, Trade Ideas mainly caters to active traders,including professionals and hedge funds. Its investment discovery engine, known as ‘Holly’, analyzes the market after each close and compares it to the past 60 days to identify potential trades. Holly then determines successful trade strategies and shows them to the platforms users to help them make the best trading decisions.

The idea, according to Senior Market Strategist Sean McLaughlin, is that the sheer amount of data available today is impossible for a human to analyze without the help of some sort of AI. The trade ideas identified by Holly can then be packaged into an automated trading strategy, thereby enabling traders to make more trades in less time.

McLaughlin, who will be presenting at the 2019 Benzinga Trading Summit, recently spoke with Benzinga about the benefits of automated trading.

“People come to us every year to not only find tools to scan actual trading ideas in the market but also to build their own algorithms so that they can trade them on their own,” McLaughlin said. “From that experience, we’ve learned what our customers want and need and in doing so we’ve taken all of that into building our AI.”

Currently, McLaughlin says its Trade Ideas Pro platform is geared toward active traders looking to leverage the power of machine-assisted or auto-trading capabilities to compound small edges into significant Alpha.

“These traders are comfortable with risk, understand market trading dynamics, and have a working understanding of statistics and how they play out over the life cycle of a strategy with a demonstrated track record of success over a large series of trades,” he said.

As their numbers have grown, McLaughlin said that they've had to develop different features that cater to specific types of traders.

“Some Traders can't trade without our simple, dynamically updating 'Top List' windows which run fully customizable scans that employ filters and only deliver the specific scenarios they wish to participate in,” he said. “Others love the ability to build and backtest their own trading algorithms with our 'Oddsmaker' feature. A growing number of our customers are loving 'one-click' trades direct from their Trade Ideas interface via our Brokerage Plus module which also allows traders to auto-trade their own strategies or Holly AI strategies.”

McLaughlin said Trade Ideas will be bringing out new varieties of its Brokerage Plus trading capabilities to all subscribers. The company is also iterating on new Holly AI strategies focused on longer swing-trading time frames geared to non-active traders, as well paper-trading, journaling, and cryptocurrency data offerings.

Learn more from Trade Ideas and over 20 top traders at the 2019 Benzinga Trading Summit on June 20 in New York. Sign up here.