Los Angeles, CA â€“ After 4 years of Research and Development, Stock Circles announces an Artificial Intelligence Breakthrough in Stock Investing.
â€œToday we are pleased to announce that Smart Auto-Trading, the first stock investing trading platform to use Artificial Intelligence natively to screen, monitor and auto-trade the S&P 500Â®, yielded conclusive test results by consistently outperforming the benchmark by 2X for the past 2 yearsâ€� says Jana Clemons, Stock Circlesâ€™ CMO.
According to Clemons, the technology does not make use of traditional Technical Analysis to trade stocks. â€œInstead, it uses Behavioral Sciences, Machine Learning and Statistical Models to screen, monitor and auto-trade the S&P 500Â®â€�.
â€œStock Circles started verifying the hypothesis that Artificial Intelligence stock investing would produce a higher return than the S&P500Â® in 2014â€�, says Clemons. â€œTo test the hypothesis, we had to build an entirely new kind of trading platform designed to ingest and process multiple, non-traditional data sources to extract actionable informationâ€�. â€œIn early 2016, after conclusive results, we were ready to start testing in market,â€� says Clemons.
To test the hypothesis, Stock Circlesâ€™ team created a trading strategy named â€˜SC Modelâ€™ designed to measure the performance of the new technology against the S&P500Â®.
According to Clemons, SC Model is a long strategy with a trading capital of $25,000 designed to auto-trade the same components as the S&P 500Â®. â€œThe strategy does not make use of profit compounding or leverageâ€�. â€œOnce a stock sellsâ€�, says Clemons, â€œSmart Auto-Trading reinvests the released capital based in the initial budget provided. It trades the same capital on a continuous basisâ€�.
Because SC Model traded the same stocks as the S&P 500Â®, â€œit accurately depicts an â€˜apples to applesâ€™ comparison,â€� says Clemons.
According to Clemons, the performance test started recording trades on February 3rd 2016. â€œAfter 2 years of uninterrupted auto-trading, SC Model had accumulated enough data to warrant publishing the test results to the community,â€� says Clemons.
Between February 3rd 2016 and February 2nd, 2018, SC Model returned 94.47% compared to 42.36% for the S&P 500Â®, an average annual return of 47.24% vs. 21.18% for the benchmark. â€œIt outperformed the S&P 2.23 times during the same period,â€� says Clemons.
SC Model vs. S&P Down Days
When asked about how SC Model reacted on S&P down days, Clemons explained that in volatile environments, the stop-loss adequately protects against preventable losses. â€œWe modeled the stop loss behavior from Warren Buffettâ€™s famous quote; â€œthe stock market is a device for transferring money from the impatient to the patient.â€� According to Clemons, â€œit reproduces what a prudent professional Money Manager would do when managing a large fund.â€�
Ms. Clemons says that between February 2016 and February 9, 2018, there were 230 S&P down days. â€œOn down days, SC Modelâ€™s stop-loss reacted appropriately during the entire life of the modelâ€�, says Clemons.
Whatâ€™s Next for Smart Auto-Trading
When asked about what plans Stock Circles had for the technology, Ms. Clemons said that the Company is interested in growing a profitable asset management business over time. â€œSmart Auto-Trading provides a great alternative to traditional trading systems and we are looking forward to next steps to scale the platform.â€�
Clemons expect that Smart Auto-Trading will open real trading March 27 to select investors. â€œIn order to auto-trade using Smart Auto-Trading, investors will require a supported brokerage account and a minimum of $25,000 in trading capital, Clemons says. If investors ever have questions about their eligibility or how to enable real-trading, we have a great support program ready to assist.â€�
About Stock Circles
Stock Circles is an Internet Investment Advisory Firm headquartered in Los Angeles. If you are interested in using technology to help become a better investor, or to find out more information about the platform, please visit https://stockcircles.com or contact them via email at [email protected]
Stock Circles Inc. (Stock Circles) provides a Service (Smart Auto-Trading) that uses Artificial Intelligence concepts to screen and monitor stocks on an ongoing basis. Stock Circles uses an automated, active trading strategy. No manual trading took place. All performance metrics are calculated before expenses. Unique experiences and past performance does not guarantee future results. Actual results are influenced by market conditions and/or service availability and accuracy.
The S&P 500Â® is a registered trademark of Standard & Poorâ€™s Financial Services LLC. All rights reserved.
SC Model vs. S&P500Â®
SC Model vs. S&P 500Â® Down Days