3. Using Artificial Intelligence
AI is proving a successful tool in the money management business. Artificial neural networks can absorb massive amounts of data, think faster and learn from subtle changes faster than a human can. Large companies have invested vast sums in AI to help them dominate their markets.
Bridgewater Associates LLC, long known as an asset allocator, managed the top performing hedge fund in 2018. AI is a core contributor to Bridgewater’s incredible success. The Renaissance Medallion Fund has achieved a new level of dominance and success using AI as reported by Bloomberg but it is no longer available to outside investors.
Thankfully, you do not have to invest tens or hundreds of millions of dollars to successfully implement AI into your practice. Trade-Ideas LLC is the only commercially available AI service that has delivered positive Alpha over the past three years and even smaller advisors can afford their subscription-based service.
Trade-Ideas has recently implemented a specialized service for advisors only, named Trade-Ideas Wealth for Professionals. This service offers access to the Trade-Ideas AI System called “Holly” together with tested algorithms available daily plus the ability to custom design algorithms to fit your investment specifications. Their new advisor service is useful for both large and small advisors, but small advisors can be very nimble and can execute risk management in a way that larger advisors may not be able to do as well. All advisors can find emerging industry sectors and high alpha stocks more rapidly, but in addition this power allows you to differentiate your firm from your competition.
I use Trade Ideas.com to help me identify when supply and demand is changing in individual stocks before it is recognizable by most advisors and traders. Trade Ideas makes millions of calculations each evening to find the best algorithms for use the next day. During the next day these algorithms select stocks to buy or sell.
It is working for me as well. I have been using it for over a year and it is my favorite system to generate investment ideas for my clients. Implementation does require some training and hand holding. So for that reason, and towards full disclosure, know that I have become an affiliate and plan to consult with other professionals in the use of Trade-Ideas AI systems. Advisors and asset managers should explore and discover more about Trade-Ideas and its financial professional services.
Conclusion
Following the money allows an investor the opportunity to take advantage of a difficult and volatile market environment. The investor can reduce volatility and risk with intelligent trading practices. Advisors can continue to profit in a rising market with less risk and perhaps anticipate better than others when supply drastically overcomes demand and opportunity turns to the bear side.
At a time when advisory fees and trade commissions are dropping, these follow the money approaches that have been delivering positive alpha are suitable for the experienced investor. My positive personal experience with them has given me the desire to be an advocate for these practices.
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