Tickeron, an artificial and human intelligence platform delivering unparalleled trading insights and analysis, has launched a new AI Robots tool for pair trading.
“AI Robots” are automated trading rooms where AI makes trades based on several neural networks. A user can adjust their selection of tickers from the given list to edit the expected number of trades per day and/or other statistics. AI Robot will then scan the tickers from the list to find trading ideas. A user can see live how AI Robots selects equities and enters and exits in paper trades.
Tickeron unveiled several pair trading robots, called Pair Traders. Pair Traders aim to generate profit with low risk by trading two highly correlated stocks. Once in a while, market fluctuations create a situation where the distance between two stock prices is greater than normal (ie extreme). At this moment, Pair Trader generates two signals: one to buy and another to sell short to create a market neutral pair of stocks. The potential profit is equal to the difference between extreme and normal distances. The Pair Trader generates another two signals to close both positions as soon as the distance between the two stocks returns to normal again.
“Tickeron continues to increase the variety of AI engines for its AI Robot lineup: Day Traders, Swing Traders, Crypto Traders, FOREX Traders, among others. Pair Trading is well-understood by hedge funds but retail investors are not familiar with the sophisticated technology of keeping their portfolios market-neutral. We’ve simplified the process of selecting pair trades, so that retail investors can learn to use it to their advantage.”
The Pair Traders’ annualised return ranges from 20-30 per cent, with an average trade duration of two to five days.