System for Securities Investment Advice
Investment Advice 3.0 – Quantitative Trading with KAIROS
KAIROS is a Forecasting System for Security Prices that Operates on the Basis of Artificial Intelligence and a Market-Psychological Analytical Approach to Anticipate Future Investor Behavior
KAIROS is an investment advisor or asset management system, which leverages machine learning on the basis of artificial intelligence and analyzes classic quantitative methods of market psychology and investor behavior to establish stock price forecasts in the form of investment recommendations.
KAIROS is ideal for fund management, proprietary trading and portfolio management and can always be used as a short-term investment decision-making aide. KAIROS provides daily purchase and sales recommendations on individual items. Moreover, KAIROS continually monitors the risks of all items, which also makes it a useful risk management tool with a return/risk profile that can be configured as desired.
Technically Supported Investment Advice 3.0
The volatile market situation means fund managers, computer-supported investment managers and quant systems rarely beat their benchmarks, given the lack of ability to ascertain clear trends. Both the performance and returns of the individual investment companies are adversely affected by the ceaseless market fluctuations.
This is compounded by the fact that persistently low interest rates mean the performance promised by underwriters invariably falls short. This has increasingly forced asset managers to look into alternative investment strategies and methods and realign their approach with the market. Algorithmic trading is an efficient option in this field.
Functions of the KAIROS Price Forecast System
Price Forecast & Investment Advice
Provision of daily trading or investment recommendations in the form of purchase and sale orders.
Configuration of the Investment Strategy
Flexible configuration based on various investment scenarios as well as meeting the individual needs of institutional investors.
Adaption to Risk/Return Profiles
Easily adaptable to the desired risk/return profiles by parameterization (number of items, long/short strategy, volatility etc.).
What Makes KAIROS Superior to Rival Price Forecast Systems?
Market-Dynamic, Self-Learning Analytical Approach Instead of Static Algorithmic Trading
Conventional price forecast systems based on quantitative and traditional algorithmic trading approaches are continually subject to the constraints of regulatory systems and models imposed during their period of implementation. However, by exploiting a self-learning model, KAIROS can adapt its decisions and forecasts to the current market situation, while eliminating all emotional fluctuations. This process involves a combination of tried and trusted quantitative methods alongside artificial intelligence and based on machine learning – without human emotion – providing you with a sustainable and low-risk capital investment strategy.
Rather Cleverer than Faster Investment Decisions
KAIROS pursues a long-term investment strategy. In contrast to high-speed trading, returns are assured via intelligent investment decisions and the assets of both private and institutional investors are protected and optimized for the long term.
Active Risk Management
KAIROS monitors the risks of all observed investments on an ongoing basis and exploits an optimal composition to minimize the overall risk of the portfolio. Slumps are significantly minimized, allowing a market-neutral position to be achieved. The risk/return profile can be fine-tuned and can also be expanded to include a risk-control mechanism. The solution is specifically programmed to avoid risks and efficiently capitalize on every opportunity.
Transparent System Instead of a Black Box
KAIROS allows fully-automatic fund management with a scope for human intervention. The system exploits decision trees to issue investment recommendations, which can be understood by people and, if necessary, rejected.
Summary Highlights of KAIROS
No Initial Investment Costs
No cost risk since there are no licensing costs – You simply pay a profit share (performance-related portion) and a management fee.
Autonomously established computerized decision-making model via machine learning and the deployment of more rational and objective methods.
Dynamic Market Adaption
A comprehensive Alpha model providing constant feedback lets you detect market developments and trends at the earliest possible stage and generate peak returns as a result.
Transparency instead of black box
Unlike with neural networks, the KI decision-making method can clearly be shown in decision trees, allowing the decisions to be understood.
Benefits of Using KAIROS
For Users and the Business Side
- Asset optimization by ensuring optimal composition of a portfolio via stock picking
- Support for investment advice and trading by issuing daily trading or investment recommendations and purchase or sale orders
- Perfect for use in proprietary trading, as well as for fund or portfolio management of private or institutional customers
For Decision Makers and IT Managers
- No investment risk in software licensing, since the charging is based on performance
- An open system with interfaces for integration into in-house systems, portal and processes
- Universal and flexible deployment thanks to modular component structure (e.g. when exchanging, adapting or expanding components)
Test Scenarios Show Above-Average Performance
Whether a bear or a bull market, KAIROS performs well above average compared to the benchmark. KAIROS’ accuracy is also relatively impervious to the current market situation, allowing market neutrality and positive performance even during downturns. To simulate the performance of KAIROS in the bear market, no special crisis-handling mechanisms were deployed – the simulation parameters used in both scenarios are identical.
Intelligence and a long-term approach rather than speed – this is what characterizes the KAIROS trading approach. And with this approach we consciously distance ourselves from the high-speed trading field. Exploiting a freely configurable trading frequency helps avoid avalanche effects and minimize risks. We are always focused on the interests and objectives of investors, not on sales. KAIROS ensures returns, optimizes your assets in the long term, and avoids high-risk speculative trading in the process.
Usage Models KAIROS
For Each Request, the Demand Usage Model
|Investment Fund||Transaction Model||ASP|
|Art of Utilization||Edition of a special fund with billing on a profit-sharing (performance dependent) and management fee||Call individual trading recommendations for various positions as needed, payment for delivery frequency of the recommendation by the solution||Operation of the solution in PASS data center, report daily trading recommendations for the individual items, invoicing transaction independently with monthly fee|