It is no secret that for many years global banks have used artificial intelligence to make better trades. Now that technology might be coming to your local independent investment advisory service.
Caapi Technologies just announced that it signed a deal to use artificial intelligence technology to build custom trading systems for small to mid-size investment firms. Caapi will build applications with software development kits (SDKs) from ai-one that enable computers to understand human language to find undervalued stocks, bonds and derivatives.
The partnership makes Caapi one of the first consulting firms to use ai-one’s machine learning technology to build trading algorithms and platforms for traders, banks and hedge funds.
Building custom trading algorithms is a huge industry propelled by the success of high-frequency trading across global markets. Originally, these algorithms were designed to find and exploit pricing differences between stocks, commodities and derivatives. Now trading algorithms are so widespread and so sophisticated that they have completely reshaped markets to the point where pricing is often driven more by speculation than it is by the underlying value of the asset class.
The challenge now is to find underpriced opportunities that generate returns based on actual performance rather than market volatility. This requires that investors sort through vast amounts of unstructured data to find undervalued assets before they are identified by the rest of the market. Often this means reading text that can’t be processed by search engines like Google. Traditional algorithmic approaches, such as Google’s, fail as they only know what they are programmed to know or programmed to find. They miss finding unexpected results that don’t fit into an equation.
ai-one’s technology is described as “biologically inspired intelligence.” It is modeled after the human brain and does not depend on algorithms. Rather, it automatically sees the inherent patterns within data and forms associations between each data element. This enables machines to learn without any human intervention. More importantly, it enables people to ask the questions they wouldn’t normally know to ask.
The CEO of Caapi, Mr. Moris Oz, sees machine learning as the key to discovering hidden investment opportunities. “a-one’s technology enables us to build semantic associative search engines for our clients that understand how the price of any given investment is related to the unstructured data found on the internet.”
Caapi’s approach is to combine proven techniques using sophisticated algorithms with machine learning that understands words. “Language is not math,” adds Olin Hyde, VP of Business Development at ai-one. “Algorithms are fantastic at processing structured data. But human behaviors and communications are inherently unstructured and complex. We learn through words not equations. So why not enable computers to do the same?”
According to Moris Oz, CEO of Caapi, “ai-one’s SDK for machine learning could be the answer for understanding and correlating soft data driving price moves in the markets. I’m looking forward to applying this to new applications.” The market will soon tell if it works or not.
About Caapi Technologies, Founded by Moris Oz, the company offers consulting, system engineering, Algo trading machines and rigid body physics simulations. They design, program and deliver complex algorithmic and automated trading platforms. Caapi’s expertise spans the most common technology platforms such as Java, .NET, GWT, Flex, PHP, CSS, JS, Facebook SDK etc., for building scalable, feature-rich Web applications. Based in Israel, Caapi services encompass project management, software design, software development, quality assurance, documentation, and technical support.
For more information see http://www.caapitech.com
Contact Moris Oz, Ph +972-9-8656875 email firstname.lastname@example.org
About ai-one inc., ai-one provides an “API for building learning machines”. Based in San Diego, Zurich and Berlin, ai-one’s software technology is an adaptive holosemantic data space with semiotic capabilities (“biologically inspired intelligence”). The Topic-Mapper™ SDK for text enables developers to create intelligent applications that deliver better sense-making capabilities for semantic discovery, lightweight ontologies, knowledge collaboration, sentiment analysis, artificial intelligence and data mining.
For more information see http://www.ai-one.com