---
title: "From Robo-Advisement to Alpha Advisement"
url: https://stacklist.com/card/31b04080-5cc0-4bb8-a4c4-67d662251f3d
source_url: "https://www.linkedin.com/pulse/best-robo-advisement-must-upgrade-alpha-advisement-david-m-aferiat/?trackingId=OHtJxHOETDC3S66Chr1O9A%3D%3D"
stack: https://stacklist.com/c/education/stack/3701d09f-5d84-426c-aef0-e129d294445b
summary: "Trade Ideas uses AI-powered machine learning technology called HOLLY to generate daily trading strategies that beat market indices through active investing. The company positions itself as complementary to robo-advisors by providing alpha-generating stock-specific insights that outperform passive index-based portfolio management."
tags: "robo-advisors, artificial-intelligence, trading-technology, machine-learning, alpha-investing, market-intelligence, fintech"
key_entities: "Silvia Davi (person), Trade Ideas (organization), Equities.com (organization), HOLLY (technology), Investment Discovery Engine (technology), Big Data 2.0 (concept), alpha-advisement (concept)"
classification: "transcript"
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acp_version: "0.2"
token_counts_approximate: 1226
visibility: public
agent_accessible: true
status: "final"
---

# From Robo-Advisement to Alpha Advisement

Recently I sat down with Silvia Davi, CMO & Chief Communications Officer and Broadcast Contributor Editor for Equities.com to discuss Trade Ideas, the use of artificial intelligence in the markets, and its impact on robo-advisement and passive investing. 1. Trades Ideas uses tools to assist traders make intelligent investing decisions - can you explain Trade Ideas’ mission and what problem it is solving? The mission at Trade Ideas we started 13 years ago remains unchanged: capture returns for the self-directed investor and professional. However we're a different technology company than we were when we started - and it's a different market. Today we're reinventing the tools and approach to making market decisions with great results. We think this is a golden era of active investing at a time when ETFs, Robo-advisement, and other passive styles of investing are so popular.  2. Who are your clients and what technology is used specifically to make these decisions? Our clients are widely diverse. They span from the retail investor to the professional trader, from Registered Investment Advisors (RIAs) to Hedge Fund Managers, Buy-side and Sell-side desks. There's a lot of variety. All of them are drawn to the advances we're making in Big Data 2.0 that I describe as taking all the insight derived from the analysis of Big Data and automating actions based on such insight. At Trade Ideas we do this using machine learning, Artificial Intelligence to power our Investment Discovery Engine, we call HOLLY. 3. We hear a lot these days about Artificial Intelligence being applied throughout different disciplines, can you explain how it is being used for trading purposes and specifically can you explain your A.I product - known as HOLLY? HOLLY is a Virtual Analyst tasked with producing daily trading strategies in individual stocks. Every evening a ‘Quantitative Combine’ performs over a millions simulated trades against 45 different base concepts. Each concept has a different purpose designed to help beat the market. The AI looks at everything; long, short, cheap and expensive, fundamental, social, technical data and everything volume driven, etc. to identify trading probabilities. Using this insight, every morning before the open, 5-8 strategies are produced that contain the greatest, statistically tested probability of identifying successful opportunities in the market. Only the strategies with a success rate above 60% and a 2:1 Profit Factor are accepted in AI models. This information advantage saves novices and veterans hours of research and testing.  At the end of each trading day, the AI model goes flat, to begin again the next day. This active strategy can complement more long term, passive strategies, but performs a front office role unprecedented in the global financial markets.   4. Is Trade Ideas competing with robo-advisors? Robo-advisement is all about managing the portfolio targeted to an index. Here's a wealth-hacking secret: You won't get rich tied to an index.  Robo advisement in its first wave largely looks to a passive, portfolio “set it and forget it” model. To secure true alpha, trading technology needs to be able to generate optimized ideas and be correlated to the second wave in robo advisement – artificial intelligence. This 'alpha' advisement is stock specific and pursues active investing for a dedicated 'slice' of the portfolio tasked with capturing alpha for a performance that beats the index. I see us as complimenting robo-advisors by providing them with the technology to outperform the index. More of the conversation can be found on Equities.com in the article,  How a FinTech Company is Using Machine Learning to Find Undervalued Stocks .  About Trade Ideas LLC Trade Ideas creates actionable market intelligence for institutions, advisors, and self-directed investors to make consistently informed decisions mitigating risk and capturing alpha. As a SaaS Fintech innovator for over 13 years, Trade Ideas leverages algorithms derived from recursive, Machine Learning, Artificial Intelligence to develop trade plans and produce statistically tested, optimized performance results. Trade Ideas' inputs include Big Data sets from U.S. and Canadian market feeds, technical, fundamental, and non-structured data sets such as news and social media. Trade Ideas' client base is from around the world totaling more than 8,000 with operations in the U.S., Canada, China, and Europe. Sign up to receive Trade Ideas’  Trade of the Week  every Monday with the trade details, charts, and the reason it’s chosen.  Next step: Schedule a demo or find out more about Trade Ideas LLC by calling (760) 230-0713 or visiting  http://www.trade-ideas.com/professional/ . Twitter:  http://twitter.com/TradeIdeas