How one company is leveraging Artificial Intelligence and Deep Learning to influence the financial scene.
We are seeing a paradigm shift in our financial world. Long gone are the days where traders filled the floors of investment banks and financial institutions.
According to data analytics company Coalition, there has been a 30% decrease in fixed-income front-office staff and a 16% reduction in equities front-office staff since 2010. This is a trend that is likely to continue, as computers powered by AI and Deep Learning continue to be picked up by Investment Banks and financial institutions worldwide. This includes the highly lucrative trading product — cryptocurrency.
Conventionally, trading cryptocurrencies involve the analysis of a variety of statistical models, chart pattern analysis, as well as the need to consider macro-economic factors such as news releases. The challenges do not stop there. For institutional traders, there are liquidity issues, order handling challenges, as well as fraud prevention. As you can imagine, it is immensely difficult to trade cryptocurrencies profitably in the long run, which is why many have turned to AI for the answer. Programs written with AI models are able to process past data and connect dots in ways that are impossible for humans to replicate. Hence, they are able to learn new things and discover new ways to trade.
The SnapBots Economy
Companies such as Snap Innovations (www.snapinnovations.com) are coming up with novel ways to approach this change. SnapBots (www.snapbots.io) is a group of AI financial bots and it offers an AI marketplace platform maintained by Snap Innovations which seeks to provide solutions to traders while at the same time, allowing developers to build on existing bots available in the SnapBots ecosystem to create even better bots which they can then sell.
That’s not all — transactions between third parties will be through a cryptocurrency coin, called Snap. This allows for the decentralization of transactions and all the benefits that come with it, including less possibility of fraud, transparent transactions, and reduced transaction fees.
Current bots on the SnapBots platform include bots that are capable of performing sentiment analysis on current market conditions, chart pattern analysis, as well as robo-advisors. Cryptocurrency trading bots on the SnapBots ecosystem includes SnapTrade, a system which feeds the trading log of professional traders to bots, which will use the data to train themselves on spotting opportunities which traders look out for — except that these bots have the potential to do it better, and more consistently. Other trading bots that will assist traders and financial institutions include bots that are capable of combing the markets and identifying vast discrepancies in prices across numerous exchanges, increasing profit-taking opportunities.
Perhaps what is truly revolutionary is the use of smart contracts to facilitate transactions occurring in the SnapBots marketplace. Stakeholders with possession of big data can now sell it to developers looking to use that data to train bots, which can then be sold on the same platform to people looking to use the bots to trade. The use of smart contracts, similar to those found on current blockchains such as Ether, means higher levels of security (as the technology used is similar to that of blockchain), better accuracy, and better transparency — factors which are extremely important and sensitive when dealing with transactions in the banking and finance industry.
The SnapBots economy hence allows developers to develop their AI algorithms in a secure environment, with access to a huge amount of data that can be bought and fed directly into bots. The efficiency and convenience generated from this ecosystem would mean faster advancements in financial technology.
About Snapbots (powered by Snap Innovations)
SnapBots develop a community to buy or build financial Bots and humans that seek to maintain a self-sustaining Bot economy. SnapBots can leverage from the human community to crowdsourcing their knowledge for certain situations. The crowdsourcing activities help the Bots to learn extremely fast, optimize conditions and generate solutions. Users also can hold their cryptocurrency on SnapBots wallet and users can receive trading rewards from AI financial bots. Trading rewards can be 2 to 5% a month.
SNAP is short for SnapBots Token based on Ethereum and that is used in SnapBots blockchain-based AI bots’ economy.
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