PsyQuation Launches First Robo Trading Coach
Announcement posted by Profile Booster 19 Jul 2016
Led by Michael Berman, a financial psychologist with more than 12 years of trading experience, PsyQuation has made available its trading alert system which identifies trading mistakes based on trader’s risk and behavioural biases that could prove costly to many traders.
“If you look at it, the statistics on traders losing their capital in the first few months of trading is quite grim,” said Michael Berman, Co-Founder and CEO of PsyQuation in Sydney.
“What we want to do is to give traders a better chance of extending their trading lifespan. Using our Robo Trading Coach app, traders will be alerted to behaviour that’s causing them to lose their trading capital. Ultimately, the goal through the alert notifications and suggestions is to rectify the mistakes and help modify future behaviour to increase the lifespan of traders. We are confident that our Robo Trading Coach can achieve this goal,” Berman said.
According to Berman, PsyQuation is using machine learning as a new way to improve trader performance through constantly calibrating the sensitivity of its alerts through the evolving insights from an ever changing market place.
“Using behavioural finance and data analytics, plus our more than two decades of trading experience, we have come up with a feedback loop alert system that points out trading mistakes costing traders money, the Robo Trading Coach doesn’t stop at simply notifying the trader with an alert, but it continues to monitor how the trader interacts with the alert and how they seek to address the problem, leading to an array of second derivative alerts based on how the trader responds to the system,” said Berman.
According to Berman, some of the main reasons why retail FX traders perform so badly is due to overconfidence, poor risk management and a weak understanding of the high leverage effect. From a behavioural perspective, trading amplifies lots of human emotions and these often translate into poor financial decision making.
“Our objective is simple. We want to help traders become more profitable. This is far more complex in practice as it is impossible to take someone with no edge in the forex markets and make them into a consistently profitable trader.
Berman clarified that the PsyQuation alert system cannot make a trader profitable just by using the app, as that would make it the Holy Grail of trading which he claims does not exist.
Rather Berman is suggesting that PsyQuation has the ability to make traders more profitable by working with its Robo Trading Coach, i.e. if you are going to lose money you are likely to lose less and if you are going to make money you are likely to make more.
Berman says, PsyQuation is not a trading system. “I’d like to emphasize that our alert system needs to be seen as an overlay to an existing trading strategy. We are complimentary to whatever trading style you choose and not a replacement,”
“Our Robo Trading Coach is agnostic to market direction and will not tell you which trades to take. It will however help you stay on course to achieve your goals within a risk return profile derived from 2 basic questions it asks all its traders,” Berman said.
He explained that it doesn’t matter who you are as everyone makes mistakes. “You can ask George Soros he will tell you he makes mistakes, if you say you trade an automated trading system the person programming and maintaining the system is also human so systematic traders are also exposed to human bias.”
According to Berman, “As we have progressed along our development journey, we have come to realise that the PsyQuation software is useful across the full spectrum of trading talent. From the newbie trader who has never traded before to the 20-year veteran managing mega bucks our alert infrastructure will be useful to everyone’s trading.”
PysQuation’s Robo Trading Coach is free for traders and available through a number of online trading providers but those who want to use it immediately to get a feel for it can open a Demo trading account on PsyQuation’s website: https://psyquation.com