Our Algorithm

The Raven Algorithm is the core of our forecast and prediction newsletters. Our team has been developing Raven Algorithm since 2018 and after 2 years of testing, it will be live after May 2020.

Our algorithm is a product of 3 different areas in financial/computer technologies and trading. They are:

  • Fundamental and Technical Analysis
  • Deep Learning / Machine Learning / Artificial Intelligence
  • Behavioral Finance and Trading Psychology
“Saints don’t live on Park Avenue.”
Photo by M. B. M. / Unsplash

Fundamental and Technical Analysis

There is the most known and old edge to looking at any instruments forecast. Most traders and investors decide their investing / trading decisions upon technical or/and fundamental analysis.

Most algorithm ideas come from mathematical calculations which basically close to technical analysis. They calculate specific values (mostly indicators or oscillators on charts) and try to predict future movements or search for similarities. However, newer strategies that use deep learning/machine learning methods usually do not use these analyses.

It was a hard decision for us to use or not to use these in our algorithm and we decided to use it because our forecast performance was better.

Photo by Kevin Ku / Unsplash

Deep Learning / Machine Learning / Artificial Intelligence

These concepts are getting more popular every day thanks to the development of computer science and top software companies. They are basically giving all necessary data to computers and ask them to predict the next movement possible. Of course, it is not simple as stated above. There is a lot of coding, testing, development and continuing development behind these methods.

If you are close to trading and markets, you have heard the words like high-frequency trading, quantitative trading, quant funds, robo-advisors, etc. What you also need to know is all of these works via deep learning and machine learning behind. These powered and high-speed computers decide trading decisions based on algorithms, models, and data. That is the biggest part of our Raven algorithm.

Photo by Jason Briscoe / Unsplash

Behavioral Finance / Trading Psychology

Most people who are interested in or following markets see every movement in markets as certain profitable trade. However, when they start trading with real money, everything seems different. That is the point when the psychology of trading comes in the equation.

We already know without any discipline no trader can success in markets. However mechanical trading methods generally do not use any human factor in their models. Discipline and psychology is a key factor in profitable trading. We inherited rules from behavioral economics and finance inside our model.