https://preview.redd.it/2r0yyzpr9z321.png?width=640&format=png&auto=webp&s=4d3d9fa506588761696133140ca38af266215f29submitted by Level01Exchange to u/Level01Exchange [link] [comments]
Could artificial intelligence in trading become the new normal? Advances in technology and new standards surrounding automated trading are pushing us ever closer to transforming the industry. If this sounds very much like a science fiction movie, we can assure you it is not.
In fact, artificial intelligence (AI) is already being utilized by banks, but its going to take a little longer for people to catch up to the idea that their investment is as safe, if not safer than it would be if their investments were handled by humans. An analysis by Accenture indicates that between 2018 and 2022, banks that invest in AI and human-machine collaboration at the same rate as top-performing businesses could boost their revenue by an average of 34 percent. AI’s application is proven to improve efficiencies or customer outcomes and the software-development team at Level01 is working hard to achieve a human-machine collaborated future in derivatives trading — to help people trade better, with ease and peace of mind.
As far as discernment in artificial intelligence in trading go, algorithmic trading is perhaps the most discussed of all. If we take a closer look at its application today, automated trading reflects our attitudes towards technology and how it is evolving the way we invest. Yet much of the discussion is still fixated on the hypothetical scenarios that automated trading would take over human jobs. Much less weight is being placed on the fact that AI through its fundamental form known to many as algorithmic trading has been used by institutional and retail investors for almost a decade now. “But there’s an obvious gap between institutional and retail users when it comes to trading and we aim to bridge that gap by creating a ‘level playing field’ for Level01 users. We do this by empowering them with our AI price discovery mechanism known as ‘FairSense’” says Naglis Vysniauskas, Head Quant Developer at Level01. “The AI was built using cross-stream analytics that were previously available only to institutional organizations.”
From helping investors to assess true market value of the contracts to enabling them to continuously update their bid or offer price relative to the implied fair value by FairSense, plenty of functions were built in to support human-collaborated trading, rather than substituting it. Introducing these features on a sleek user-friendly app is a strategic step-by-step approach to help the public get used to a whole different way of investing on an efficient and trustworthy Peer to Peer Derivatives Market platform like Level01. “People will experience trading at speeds, liquidity, freedom, accountability and transparency that have never been available before” says Vysniauskas. Those that find it hard to believe, can now experience trading on Level01 without limitations traditionally set by brokers, who would force their clients to accept their given price, disallow clients from dictating the best execution and insist that clients to trade at a ‘spread vs. mid’ (clients have no power to negotiate the level of spreads which they pay). The level of freedom granted to users on Level01 is enticing and highly persuasive.
“On the Level01 Derivatives Exchange platform, retail investors (or users as we call them) can trade against multiple peers or brokers, and this enables them to find best execution available,” says Vysniauskas. “Also, the ability to specify a fixed spread to fair value of an instrument could potentially reduce trading spreads significantly for large investors.” The practicality of this feature though may not fit small investors though, because leaving fixed bid or offer prices without continuous adjustment would be risky in markets where sudden movements are common. “That is why we built Level01 to give users the freedom to continuously update their bid or offer price relative to the implied fair value by FairSense, this is so that if the trade is not a match, the bid or offer price is updated continuously as market moves to ensure that it is always priced competitively relative to the most recent fair value” adds Vysniauskas.
HOW DOES FAIRSENSE WORK TO LEVEL01 USER’S ADVANTAGE? For the purposes of explaining how FairSense AI helps users on Level01, we take a look at this case study of a Binary Option Example on EUUSD Forex Pair.
A 10-minute binary put option is being offered at a $59.73 (fair value +$0.50). The order is not filled or matched almost immediately, and after 4 seconds, the EUUSD spot price has moved by 1.5 pips and the fair value has not moved above the investor’s offer price.
In this case, a contract is being offered below fair value.
Now take a look at Chart 01 below. You can see that the relationship of the fair value of an option with the spot EUUSD price. You can tell that the fair value is highly dependent on the spot rate. Thus, if a retail investor submits an offer to an exchange, it might be filled at a time when it is already below the fair value — an undesirable scenario for investors. Such scenarios will stop investors from submitting further offers to the exchange.
To resolve this common problem, Level01’s FairSense AI enables all investors to quote ‘relative offers’ to FairSense’s fair value. This allows investors to simultaneously compete for the best offers without imposing them with a requirement to have their own algorithms for price estimation and having them continuously updating the quote manually.
In many ways, having AI as the norm will become essential to creating investment outcomes that are optimized for every type of investor, truly transforming the way trading is done. With an advanced Blockchain platform, AI and inbuilt frameworks that are designed to favor the user, Level01 will shape the future of automated trading on its Peer to Peer Derivatives Exchange at scale and speed that the world will come to marvel.
The investor has put in a stop-limit order to buy with the stop price at $180.00 and the limit price at $185.00. If the price of AAPL moves above the $180.00 stop price, the order is activated and ... On the below screenshot, each yellow rectangle shows a buy stop order you could place while the market was going up. And of course, whenever the market formed a support level, you could place a sell pending order (sell limit) too (the blue rectangles), but when the market kept on going up and broke above the resistance level, you would have to delete the sell limit order and let the buy stop ... If I set a limit sell at a higher price for taking profits, and a stop loss down below as my safety net, then I’ve structured my XYZ trade in such a way that I know my risk and my potential reward. Because I only want to sell my shares once but yet have two sell orders, the system will automatically cancel the remaining order once the first one is filled. So if XYZ climbs to my target and I ... Option 2: Stop-Loss Order. In this instance — a stop loss order — the investor has specified that if the value falls to a specific price, then he or she wants to close out the position. A stop loss order is designed to limit loss. The investor originally purchased Gbp/Usd at 1.2485. Let’s say he or she places a stop-loss order to sell the ... Here’s a great question from a subscriber to The Sather Research eLetter about trailing stop limit vs. trailing stop loss. “I really liked your book and it has been a big help to me. I do have a question about the 25% trailing stop on close of market: What is the difference between trailing stop loss and trailing stop limit & which should I use. How Limit and Stop Orders Work. A limit order is an instruction to the broker to trade a certain number shares at a specific price or better. For example, for an investor looking to buy a stock, a limit order at $50 means Buy this stock as soon as the price reaches $50 or lower. The investor would place such a limit order at a time when the stock is trading above $50. The simplest way of setting stop loss orders is at a static price. So, the price that you have set for a position does not change until the trade hits either the stop or limit price (the maximum price that you may have set). This is the most popular form of Stop Loss due to its simplicity. Day Trading vs. Swing Trading – Using Stop Loss Sometimes when a Forex trader starts using MetaTrader4 (MT4), especially if he has previously used other platforms, there is a level of confusion at the terminology MT4 uses for placing pending orders. So let’s check what the pending order options are for MT4 and straighten out the misunderstandings. Placing a MT4 Pending Order. This part is very straightforward and it helpful if you are ... The disadvantage of a trailing stop is that price may retrace on the above trade to say 1.3530 then find it's second wind and move up even higher meaning you cant cash in on that extra profit potential. Ok, now onto Market orders vs Pending Orders? (I assume by Pending Orders you mean Limit Orders) A Market Order means you will be filled at the current price shown. For a long trade it will be ... A dynamic stop-loss order is based on an indicator such as a moving average or a volatility indicator in order to remove any guesswork from the decision and determine a point after which the trade idea becomes invalidated. As its name suggests, a dynamic stop is not static. It moves with the current market conditions and the underlying indicator to whom it has been attached. Popular indicator ...
[index]          
+252634496857 ama +252634493320 ama +4794105914 ayaad nagala soo xidhiidhi karaysaa, ha ilaawin inaad Subscriber dhehdid si aad casharada cusub u heshid sido... Hey everyone! This is the fourth video in my “Real Forex Basics” Series going over Stop Loss and Take Profit and WHY it is important! If you would like to co... In this stock market order types tutorial, we discuss the four most common order types you need to know for buying and selling stocks: market order, limit or... Today we explain how to use orders — instructions to trades based on certain price conditions. With plenty of examples, we explain the meaning of Stops, Limi... Using Stops and Limit Orders. http://www.financial-spread-betting.com/course/stop-order-types.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! This i... When it comes to managing risk, stop orders and stop-limit orders are both useful tools, but they aren’t the same. Join Kevin Horner to learn how each works ... This is a Whiteboard video for FXCM explaining stop and limit orders. The following content is explained in the video. white-boarding by Vitz. www.vitzonline... To get the transcript and MP3, go to: https://www.rockwelltrading.com/coffee-with-markus/stop-order-vs-limit-order-whats-the-difference/ There's a huge diffe... A short video explaining the concepts of buy stop, sell stop, buy limit and sell limit. This video is specifically made for Solutions' students under the bas... In this video, we'll cover: 1. Market vs Pending orders in Forex 2. How to set Pending orders when trading Forex? 3. Fractional disparity (EURGBP) and market...