Our Technology

Introduction

At Trader Bots, we have a cloud of computers that are constantly examining financial data to find patterns that we can exploit. We try to analyze technical indicators, investor sentiment, and general patterns.

What results is a community of algorithms, neural networks, and artificial intelligence that makes stock predictions. These little "bots" start competing and mating with each other to become more and more intelligent. Think evolution.

(We plan to release the more intelligent ones after our beta. Right now they're still evolving in our incubators).

Our technology itself is a constantly evolving beast. It will keep changing as we find better ways to analyze the market.

You can then start following a specific trading system to see what trades it makes, or you can take a look at what the community thinks about a particular stock.

What is our technology?

So we have two main products: Individual Stock Predictions (beginner) and Trading Systems (advanced).

Individual Stock Predictions

Our individual stock predictions are based on what all the various trading systems are doing as a collective. We are constantly improving the formula weighting parameters on the performance, risk, history, etc. of each system.

For simplicity, every trading system votes on each stock, and each vote has a different weight.


Trading Systems

This is where the real magic happens.

Our team develops new trading strategies, formulas, etc. to manage a portfolio. We look at various factors of each system we develop. To name a few:

  1. Returns over various time periods and lengths
  2. Amount of risk and variance
  3. Consistency
  4. Profit / Loss distributions
  5. Length of trades
  6. we look at many more factors, and we're constantly adding more

These strategies are then fed into various Artificial Intelligence (A.I.) systems that figure out how to optimize and draw predictions based on the data. We use concepts from Neural Networks, Genetic Algorithms, Evolutionary Algorithms, etc.

The end product is a collection of systems concurrently trading stocks. These systems compete against each other, and the weak ones are eliminated while the stronger ones reproduce to improve the genetic quality of the entire collection of systems.

In summary, we build up a suite of ways to analyze the market and manage risk. Our Artificial Intelligence will take these inputs and figure out what trades to make, and how to manage a portfolio.


Why are giving away this technology?

We're not. That would be silly. You should be extremely cautious when approached with a deal that seems too good to be true, especially in the world of trading systems.

For starters, we don't reveal the specific details of how our technology works. That's our secret sauce, and we're constantly advancing it. We'll only reveal insight into what the systems trade.

Second, we have a specific risk / reward profile that we look for (we're very conservative investors which helps us minimize any losses). We also look for a specific distribution in the trading history that matches trading styles we're comfortable and familiar with trading. So in the past we used to discard perfectly good trading systems that didn't meet our strict and specific requirements.

One day, we realized that even though these systems don't meet our current requirements or trading style, they may be perfect for others, so we're starting to put our systems onto Trader Bots.

An interesting side-effect is that now we like using the website to do an initial screen of our private trading systems instead of our ugly internal UI, so we are very likely to keep making the site more advanced and useful.

Luck You.

Conclusion

Our technology is pretty complex and constantly improving. Tons of code running over a distributed network of computers. All of this is churning to figure out how to best predict the market.

Luckily, you don't really need to worry about the details, that's our job.

All you need to do is look at the results: Individual Stock Predictions (beginner) and Trading Systems (advanced).

Now, let's make some money.

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