What is artificial intelligence and machine learning?
Though we use the terms interchangeably for these purposes, they are indeed different. Broadly, artificial intelligence is any intelligence demonstrated by machines. Machine learning is a subsect of artificial intelligence where a set of algorithms continually improves based on its experience. Both terms evolve and change as machines become more and more sophisticated.
How can AI help me become a better investor?
Artificial intelligence and machine learning operate at a scale and scope unmatched by humans. Institutional investors can seize upon opportunities our AI and ML uncover to, as our clients say, “give [them] first-mover advantage.” Artificial intelligence can also surface opportunities that may not always be intuitive, allowing the asset manager to find performance in their portfolio.
What is quantamental investing?
Quantamental investing is a portmanteau of quantitative and fundamental asset management styles. It combines big data and engineering components from quantitative finance with the financial expertise of traditional fundamental managers, for the best of both worlds. We at Boosted.ai believe quantamental asset management will be the way of the future, harnessing insights from the world of big data and combining it with the finance acumen of active investment managers. If you’d like to learn more, you can read our blog post about quantamental investing here.
I am a retail investor – can I use Boosted.ai?
Our software – Boosted Insights – is designed for global institutional investors and investment advisors, not retail investors. However, if you would like to learn more, please follow us on LinkedIn! We post all our newest content and webinars there.
What is your expertise in AI and finance?
Our team of seasoned professionals have decades of experience in both artificial intelligence and finance at world-class companies like Microsoft, Google, Tiger Management, RBC and more. Read more about the Boosted.ai team.
I already get great returns on my portfolio, why should I add machine learning to my process?
Why use an abacus when you can use a calculator? We believe that AI is the future of investing. We know that implementing AI in your process can help push your returns even higher. Our machine learning overlay white paper illustrates how through machine learning and portfolio optimization, we added an average of 232 bps of alpha to funds, without adding or removing a single stock from the existing holdings.
How can using machine learning help me reduce risk in my portfolio?
One great way to integrate AI into your portfolio is by using it to mitigate risk. Our machine learning models helped navigate the quant shock, surface risk in short positions like GME and pilot through black swan events like Coronavirus/Covid-19. Our algorithms also help constrain normal risk factors, like momentum, value and size.
How can AI improve my portfolio?
Artificial intelligence and machine learning can do a lot of things! One exciting development is in improving institutional investor’s portfolios. There are a lot of use cases, like dynamic stock screening, machine learning overlays, targeted baskets, incorporating alternative data and more. If you want to learn more, chat with us here!
I don’t have any quant expertise, how can I use this product?
Boosted.ai doesn’t require a data science or engineering or quant background to find opportunities for your portfolio. It relies on your capital markets expertise to create models with our point-and-click interface. You input whatever features you think are important in stock picking (fundamental, macroeconomic, even your own data) and our proprietary, finance-specific machine learning creates a predictive model for you to analyze further.
How long does it take to learn your AI software?
Though we’ve created a very complex product that certainly allows for a lot of exploring, users can start creating models with Boosted Insights almost immediately. The intuitive interface allows asset managers to hit the ground running with AI. And if you have any questions, our in-house data scientists, machine learning experts and customer service team are always happy to help!
If your models are so good, why not just start a hedge fund?
We are not creating models to sell to clients (although our in-house data scientists and finance experts are always happy to help you hone your own!). We offer artificial intelligence software to allow asset managers to implement machine learning quickly and efficiently in their own process. We’re passionate about democratizing AI and sharing it with as many people as possible.
Our firm requires explainability for our models – is Boosted.ai a blackbox?
We offer full explainability with our AI, highlighting which features in the investment manager’s model were most important in the decisions made by the machine learning. Our ML also showcases how those features compare to the company’s performance and to other companies in its sector.
If you have tons of people using Boosted Insights, won’t everyone come up with the same model?
We have thousands upon thousands of variables for investment managers to use in our system. We also allow managers to import their own data, for an even wider array of options. Every model created with Boosted Insights is as unique as the asset manager’s process that created it.
We are an ultra-private fund. How are you using our data?
Boosted.ai keeps your data strictly confidential. Even the models you create are shared only with you and your team, except when shared with us for support purposes. We also make sure your data stays secure with a strict data security protocol.
Can I use this system to make long-range predictions?
We have clients that trade as infrequently as quarterly and we have clients that trade as frequently as daily.
Do I need to have high turnover to have success with this platform?
We have clients with target turnovers as low as 25% and we have other clients that make models in our system with turnover over 5,000%. We also have created portfolio optimizers to help clients minimize turnover in their portfolios.
How is your AI different from algorithmic trading?
Algorithmic trading, or algo trading, uses computer programs to follow a defined set of instructions (or algorithm) to execute trades. Most algorithmic trading is also high frequency trading (see below). By following the strict rules of the algorithm, algo trading seeks to remove human intuition and instinct from the equation. Boosted.ai makes use of algorithms, but we strongly believe that human and machine (learning) create the best results. This pairing of human instinct and machine processing power is called quantamental investing and is how we see the future of asset management. To learn more about quantamental investing, see here.
Is this the same as high-frequency trading?
Though high-frequency trading (HFT) also makes use of mathematical models and algorithms to make decisions, Boosted.ai is not an HFT company. Our software learns – based on your inputs, variables and data sets, what equities will perform well under certain conditions and which will perform poorly. It creates a dynamically ranked list of stocks within the portfolio manager’s universe that they can trade themselves. In high-frequency trading, the fastest execution speeds on trades are typically what creates profit for a user. With Boosted Insights, the ideas generated by our machine learning (or risks avoided, or any of our other AI use cases) are what creates value for a PM.
Does Boosted Insights work for cryptocurrencies?
Boosted Insights is mainly for managing equity portfolios (we have datasets that span global equities), but we know that there is demand for using AI to analyze fixed income, foreign exchange and cryptocurrencies. Let us know if you are interested in machine learning products for those asset classes! We are always improving the product.
Do you have a mobile app?
Boosted Insights is a cloud-based software, so it can be used anywhere you have a working internet browser. We do not have a dedicated mobile app at this time.
Is using AI like being able to tell the future?
No. Machine learning takes your inputs and learns, based on past performance, which stocks might do well in certain situations. It takes these extrapolations and makes predictions that are often correct, but they are still predictions, not a guarantee of future performance. What our machine learning is very good at is intaking a vast amount of data and finding non-intuitive links between stocks and other opportunities in your portfolio, all backed by your specific capital markets knowledge and expertise.