NeuroStrategy FAQ

1. What distinguishes NeuroStrategy from forecasting systems?

Today, you can find various systems on the market, which provide price forecasts for financial instruments using a variety of technologies. These systems predict whether and with what probability the price will rise or fall. Sometimes, the attempt is also made to predict what price the instrument will have tomorrow, next week or the following month. Even the best of these systems are rarely able to achieve success rates above 60%.

The user is now faced with several problems: first, he must develop a strategy for trading in the security on the basis of the predictions. He must decide, for example, what level of the stated probability is sufficient for trusting a prediction. He himself must determine stop loss levels, make complex calculations regarding transaction costs and much more. Second, he must consider precisely what should happen in case of a false prediction. A success rate of 60%, of course, implies a failure rate of 40%. This is more than enough to squander an investment in no time at all.

NeuroStrategy, on the other hand, is a system of artificial intelligence (AI), which was especially developed for investigating financial data with the direct aim of learning a trading strategy. This strategy includes considerations regarding risk management as well as transaction fees and probability analyses. You obtain a clear trading recommendation rather than a prediction about price or developments.

An important further distinction is the simplicity of operation. Most of the technologies implemented in NeuroStrategy were not originally developed by Ivorix. Many of them have been successfully used for years in renowned applications for the financial sector. These applications, however, usually require an extraordinarily high degree of specialist knowledge in the areas of data and chart analysis. With these applications, the user must convert the price information into so-called market indicators and feed these in turn into the system. The operation of such applications requires technical specialists.

With NeuroStrategy, we have gathered all of our know-how from the areas of data mining, time series analysis and data analysis under the roof of one very user-friendly application. Our goal was to develop an application, which can be operated by professional investors, not only by AI specialist. Accordingly, NeuroStrategy relieves you of the entire set of tasks of data preparation, analysis, training and back testing. As a user, you only need to enter those parameters, with which you are very familiar from your field of professional activity. These include, for example, applicable transaction fees and the return of a risk-free investment.

In regard to the decision, whether to use a particular strategy model or not, again only your qualifications as a trading expert are called upon. How do you assess the production performance of the developed model? Are you satisfied with the risk management? In answering these questions, NeuroStrategy will assist you with expressive graphical representations.