Acuity Trading has announced the launch of an innovative suite of fully automated AI-powered trading signals, marking a significant advancement in their product offerings. This new feature, part of Acuity’s AnalysisIQ suite, allows clients to access both expert human-led signals and AI-driven automated options, currently focusing on the foreign exchange (FX) and cryptocurrency markets.
The latest development is the brainchild of Acuity Analytics, reflecting a noteworthy evolution in automated trading insights and technical analysis. By merging traditional market strategies with advanced Natural Language Processing (NLP) and sentiment analysis, Acuity aims to provide traders with sophisticated analytical tools that can be pivotal in a fast-paced financial environment.
Ariel Duarte-López, PhD, the Head of Data Science at Acuity, remarked on the innovation's impact, stating, “Acuity automated signals represent a significant advancement to our already popular technical analysis offering. By leveraging AI and data science, we’re able to generate trading signals that not only reflect historical data but also capture real-time market sentiment and volatility.”
Technical Analysis (TA), a foundational element of trading strategies, has traditionally relied on historical market data to predict future price movements. Acuity Trading enhances this approach by integrating AI-driven sentiment analysis sourced from news articles and incorporating data related to market volatility. This advanced research methodology aims to equip traders with a comprehensive understanding of market dynamics, potentially providing them with a competitive edge.
The new trading signals are integrated within the existing AnalysisIQ product, ensuring users retain familiar features while gaining access to sophisticated AI-driven insights. This integration offers clients the flexibility to customise their trading strategies based on asset classes and personal preferences.
Currently, Acuity provides trading signals covering a total of 2,122 assets, targeting major indices such as the SP500, Russell 2000, EUROStoxx, FTSE100, NASDAQ100, along with a variety of cryptocurrencies. The extensive coverage is designed to prioritise high liquidity and popularity, granting traders relevant and actionable signals. Moving forward, the firm plans to enhance its offerings by expanding into additional global equities, commodities, and foreign exchange markets, further increasing the range of trading opportunities for its clients.
Each trading strategy within the AnalysisIQ product has been meticulously optimised for various parameters, including risk tolerance and decision-making timeframes. This rigorous optimisation is conducted separately for long and short trading strategies and has shown promising results through thorough backtesting.
Dr Duarte-López also highlighted the importance of performance and risk management in trading, stating, “Even with a lower win rate, our strategy’s profitability is driven by the higher revenue from successful trades compared to losses from unsuccessful ones.” Despite the win rate falling below 50%, the AI-powered trades have yielded profitability through careful risk management and effective stop-loss measures, illustrating a strategic approach to trading.
Acuity Trading, which revolutionised the online trading experience for investors in 2013 with its introduction of visual news and sentiment tools, continues to lead the fintech market. Today, Acuity remains committed to delivering alpha-generating alternative data and high-engagement trading tools, drawing on cutting-edge AI research and technology. The company’s diverse delivery options, including APIs, MT4/5, plug-and-play widgets, and partnerships with third-party automation services, further enhance its commitment to supporting investors at all experience levels.
Source: Noah Wire Services