Innovation has always been and will always be the lifeblood of financial markets. In recent years, the most important innovations have been technological. Massive increases in network bandwidth and hardware processor speeds have allowed an ever-growing proportion of trading to take place electronically rather than via voice (open outcry or telephone). This trend has been reinforced by regulatory changes that have encouraged centralized rather than bilateral clearing and exchange-based rather than over-thecounter (OTC) trading. These developments made the financial markets increasingly competitive and latency-sensitive. It has become harder to develop and maintain a competitive edge in trading.
The combination of greater data availability and faster processors to analyze that data allows the use of increasingly sophisticated techniques such as machine learning and artificial intelligence (Al). Recent news stories have highlighted the uptake of these technologies at high profile investment management firms. We have discovered how to make efficient use of artificial intelligence
(Bayesian networks, decision trees, genetic algorithms, neural networks, support vector machines) and have employed a multifactor triangulated conviction model to find individual stock "signals" within the general market's "noise".
One key development that has had a fundamental impact on many electronic markets is the trend towards so-called 'hyperliquidity'. This describes a situation where the velocity, volume and variety of digital data have pushed the transparency and efficiency of a market to a state at which they are at (or very close to) their highest possible levels. According to Belt and Boudier, who coined the term in 2016, there are several forces pushing markets towards hyperliquidity, namely:
⇒ An increasing degree of standardization via trading on exchanges using standardized contracts and greater transparency of information. This occurs due to digital dissemination at ever greater speeds, producing close to perfect information for all professional market participants.
⇒ The emergence of an advanced digital infrastructure, in particular, co-location facilities using high speed links. Other examples include market access via convenient and efficient APls, efficient and transparent matching engines.
Many markets that are characterized by electronic trading - such as equities, foreign exchange, futures and some interest rate derivatives - have entered a de facto state of hyperliquidity. This has resulted in the dominance of trading platforms which has in turn led to a significantly reduced level of human intervention. Decision-making is increasingly initiated and managed by algorithms fed by high-speed, automated digital data feeds. Trading volume is dominated by market makers that use algorithm-based trading capabilities of varying degrees of sophistication. Trading strategies rely on combinations of speed, low latency, optimized execution and relative value-driven cross-asset trading.
WOPR, Wallstreet Online Predictive Research, is a technology which provides a web-based stock research and automated trading platform for stocks, indexes, bonds, options, commodities, and currencies to investors around the world. There are multiple prospective users of the technology; individual investors, institutional investors and securities professionals.
We have built a fully automated global stock market technology with the following attributes:
⇒ 11 categories of strategies
⇒ 16 ranking/ filtering algorithms on 70,000 global public companies
⇒ 42 exchanges in 26 countries updating in either 15 min delayed or real time
⇒ 47 current trading strategies out of 209 trading strategies being tracked automatically
⇒ 93 visual chart patterns being tracked on every stock every day
⇒ 7,000 US equities research reports published per year
⇒ 88,000 global publicly traded companies already live in our price/ volume database
⇒ 600,000+ public predictions made on US stocks over last 9 years
WOPR aims to change the way individuals and institutions invest their money. The vacuum that has been created by the Wall Street meltdown of 2008 and disappearance of many of the major players in research, trading and investment banking, has created a rare opportunity for WOPR to provide a full suite of Wall Street services that empower investors to completely bypass the major Wall Street firms and access research services that were once only available to the wealthiest people in the world.
WOPR uses artificial intelligence software that combines neural networks and genetic algorithms to search for combinations of market factors and trading signals. This combination of proprietary and licensed technology reduces investment risks at a level beyond the technical abilities of professional money managers. By automatically selecting the highest probability trades in stocks, bonds, options, commodities and currencies, WOPR provides an innovative solution to the financial services community that is precise, predictive and profitable.