Jun 28, 2016

The Advantage of Artificial Intelligence in Brexit Trading

Written by Katie Gomez

On June 24th the market had to handle the Brexit. The Brexit was a type of Black Swan event. Black Swans are unusual events that are by definition very difficult to anticipate. What is even more difficult is interpreting how to react to those events in the markets. This is where Holly, Trade Ideas’ Artificial Intelligence, proved herself beyond a shadow of a doubt.

On the actual day of the Brexit when the markets SPY was down over 7 points Holly stayed completely out of the market. It was one of only three days since our AI was launched in January 2016 that no trades took place. Sometimes it is better to not be in the market and just sit on your hands. When an Artificial Intelligence that combs through millions of data points sees no advantage it does nothing — that was perfect.

However, there is another even more subtle and important point to understand the true differentiation. Although Holly did not trade the market that day, when the markets closed she learned about the details of Brexit data. Those learned experiences help us to continuously improve the performance of the only Artificial Intelligence available to the retail investor..

Today on June 28th, 2016, just four days after the volatility of Brexit, Holly has her best performance day to day to date. Of the 18 total trades, 15 were profitable!

The highlight of the day was a 43.6% gain in one stock, GBR, New Concept Energy.

The strategy that found GBR was “Escalation Under $20.” This is a constantly changing, self adjusting algorithm that automatically attempts to find the biggest gainers. Today it was successful in that way that makes a difference!

To learn more about Holly, the AI, and how Trade Ideas leverages real statistical analysis with our derived data, make sure you’re signed up for our free Trade of the Week newsletter. By signing up, you’ll get an AI developed trade idea in your inbox every Monday and invitations to our exclusive webinars.

Happy investing, Dan Mirkin CEO, Founder, Trade Ideas LLC.