Do you want orange or are you satisfied with blue?
The difference is Algorithmic Trading with Artificial Intelligence.
For a professional English commodities market maker, 7LYTIX developed deepTrading, an algorithmic trading strategy based on deep learning models that recognize patterns in data while considering trading risks. The achieved result when using deepTrading in the commodity futures market is very convincing in the long term as well. Our technology generated significantly higher returns than professional traders throughout the trial and responded faster and more successfully than any expert during the Turkey crisis in August 2018.
Performance comparison of the 7LYTIX-optimized strategy with the existing one.
The income was increased by 13%. during the test period of 6 months at the same capital use.
The volatility of the strategy is a dynamic parameter that can be adapted to the risk aversion of the client. This flexibility also allows significantly higher yields with only a small change in the capital use.
Neural networks were trained on yield maximization with deepLearning-methods by establishing correlations between two related parameters (steel-options on scrap and rebar) while considering controlled risk-control. Therefore, the first 2 years of the dataset were used to evaluate the performance the last 6 months.
Required deposited margins ("bail") of the existing strategy (blue) and the 7Lytix-optimized strategy (orange).
The mathematical formulation and numerical implementation of the profit and risk function is done in Python with methods of machine learning and neural networks. The deep learning-models run on powerful GPU cloud servers.
Sample-screenshot of the web application shows the fund performance including the daily action-recommendation.