Recent trends suggest retail investors are becoming increasingly interested in machine learning and algorithmic intelligence, or AI.
That’s according to Abhinav Sinha, the co-founder and co-CEO at Rafa AI, a tool that unpacks markets and eliminates the barriers to profitable investing. After a long career in technology, working at organizations like Nvidia Corporation (NASDAQ: NVDA) on self-driving hardware and software, as well as quantitative trading, Sinha saw a genuine problem emerging.
“The new-age investors have an uphill battle. There’s a lot of things you have to learn,” he said in a discussion on simplifying investor workflows using AI.
“We wanted to solve two things. One, the monotonous work of evaluating balance sheets, levels, and doing the groundwork. The second was to clean up the interfaces because you are generally overwhelmed with the amount of data that actually comes at you.”
In the simplest way, Rafa AI does all the heavy lifting, leaving investors the decision making.
Core Product: Rafa’s technology makes technical and fundamental investment decisions easier. It does this by converting historical market data into simple scores.
“Rafa gives the cycle, trend, and risk,” he said. “All the models are running and keeping you updated with what your risk is currently in a particular stock or cryptocurrency. At the same time, if you are to build a position in a stock, Rafa gives you trends, levels, and the strength of it.”
Rafa’s advanced machine learning models uncover hidden opportunities in markets. Core features include market and portfolio insights, an advanced discovery engine and institutional holding insights, among other things.
Investors can further digest complex data points, and a security’s personality, through scores and levels that assess risk and reward quickly. Tools like Stock Shapes, an accelerated fundamental analysis that converts company balance sheets and cash flows into simple shapes, as well as Trend Scores and Automated Buy/Sell Zones, cut down on the groundwork.
“If I were to build a position in Apple, it would basically give me all the levels that are needed, with the proper strength right away. So, I don’t need to actually do any of the analysis because the machine has already done it,” the co-CEO said.
Apart from levels at which investors can establish their positions in, Rafa’s AI reports provide updates on facts that matter.
“We see ourselves providing the most important decision making tool for investors.”
Recent Developments: In light of the COVID-19 coronavirus pandemic, the digital transformation in finance accelerated market participation.
The recent trends are a tailwind for Rafa AI, the co-CEO said.
“The future is about spending less time on analysis. The trend, right now, is heavily in favor of trading because software is gamifying,” Sinha said in a statement that condemned organizations taking advantage of investor biases.
In response, at every stage of the build process, Rafa AI looked to cut down on designs that promote emotional trading, and the fear of missing out.
“You don’t get caught emotionally making decisions. Rather, the machine is able to do the work consistently and very well.”
Innovation Outlook: As trends point to the increased use of AI in investor workflows, investors will likely spend less time analyzing and more time making data-driven decisions.
Going forward, in the next two years, Rafa AI is looking to venture into personal finance.
“If you have an investment opportunity, for example, it can keep track of it while also keeping track of your goals in terms of savings, and how you are running month to month expenses,” Sinha said.
“We’re very certain that we’ll be able to achieve a sort of unbiased platform which allows you to become a better investor, and to make data-driven decisions. Our forte is to present and visualize data well, and then take decisions on it.
To learn more about Rafa AI, click here.
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