CORTEX aiTRADE is an AI-based trading system that consists of a smart data preparation engine, a state-of-the-art AI engine and a decisions support and visualization system to generate buy and sell signals for trading purposes and can be used for risk management, compliance, governance, trend analyses, value chain optimization and benchmarking purposes.
CORTEX aiTRADE functions in an 100% automated fashion. Trades are only made when the global trend is changing, leading to very few trades per year. The introduction of Artificial Intelligence procedures also facilitates advanced risk management based on the trading procedure, not on symmetrical mean/variance statistics. The concept of risk is introduced by defining a “no trade zone” around the price action of the instrument. No trades will be made against the trend within this zone. Some elements of classic trend following is introduced to generate buy/sell signals (green and red circles). Each signal is subjected to thorough AI analysis to ensure a “most probable” outcome. Green lines are “buy” trades and red lines are “sell” trades.
Utilizing the rules of the trading algorithm, a risk factor can be calculated for each instrument in the portfolio. A portfolio risk factor is thus available at each time step. Portfolio risk can be minimized by dynamic rebalancing the exposure of individual instruments.