The brain of our fund manager
We at Dalalsteet.ai have trained an algorithm which has created a neural network of an equity fund manager.
According to research, a fund manager needs to have access to the right amount of information to analyze the trends of the markets to make the right buy/sell on the right time to earn returns from the stocks invested in a portfolio.
It is very hard for a human to spend and track all the market trends. To manage a successful portfolio, a fund manager needs to have the access to the right amount of information to make the right trade calls.
About our algorithm
We have designed an AI engine which scrapes all the data available in the market and converts that into information which is essential for a trader to make the right calls.
Our algorithm is designed in such a way that where we collect:
- Financial Information of the companies listed
- Run all technical indicators on the stock
- Analyze the sentimental value of the company and link it with the stock.
Once the data is collected we run our proprietary built with the concept of Long Short-Term Memory (LSTM). This creates a neural network where it recognizes the change in patterns, price and volume traded in the stock exchanges and quickly predicts the trade calls.
Does the current algorithm predict equity stocks?
Yes, we have trained this algorithm for 8 months with more than 20+ highly trusted news sites, blogs etc. Our current version of the algorithm is tested with the NSE(National Stock Exchange) listed companies and we also have trained our algorithm to understand various market cycles which are currently associated with the exchange.
How accurate is this algorithm?
We are currently in the Beta phase of our algorithm and we are able to generate about a max return of 15%+ per month from few stocks on following the buy/sell patterns which is suggested by the AI.
We are still working on enhancing the system to minimize the loss function and increase the gains earned from the calls.
Is algorithm trading legal in India?
According to SEBI circular no. SEBI/HO/MRD/DP/CIR/P/2018/62 we are designing our algorithm to use all the norms and guidelines provided by SEBI to incorporate with the algorithm.
