Retail brokerage firm Angel Broking on Monday announced the launch of "ARQ", an intelligent and predictive investment engine for retail investors that is powered by the combined strength of machine learning, cutting-edge cognitive technology and deep industry insights.
ARQ uses algorithms, quant and winning modern portfolio theory to enable personalized investment advice based on individual's financial goals and risk profile, by taking advantage of the diversification benefits among different asset classes.
ARQ processes a massive amount of data to recommend only the best investment strategy out of billions of possible combinations. It makes use of advanced algorithms and processing power to back-test the predictive power of the widest possible universe of investment variables. Angel's back-tests and simulations have amply demonstrated that ARQ performs exceptionally well in different market conditions, consistently outperforming the benchmarks by significant margins.
"Successful investing in stock market requires a lot of tenets to come together - the essential knowledge of market behaviour, massive amount of data to sift through and interpretation of a wide universe of investment philosophies and techniques competing to identify the out-performers. If this was not intimidating enough for an investor, he also has to face countless strong opinions and even tips from people around him, leading to impulsive decisions and deviation from another most essential tenet to success â€“ disciplined investing," said Vinay Agrawal, Chief Executive Officer (CEO), Angel Broking.
"Bringing all these tenets together is beyond human capabilities - even eminent fund managers cannot handle this complexity â€“ only a well-designed and powerful machine can do this â€“ similar to how Deep Blue could beat the best chess grand masters in the world and Google AI could beat the best Go master in the world. Angel Broking identified this need and put its best data scientists, technology experts, market researchers and deep industry experience at work for more than a year and built the revolutionary investment engine â€“ ARQ," he added.
Dinesh Thakkar, CMD of Angel Broking explained how the tool works for investors.
"Many retail investors start investing in equities when they see others making a killing and end up entering at the high point of the markets, only to sell in a panic later. This is the classic greed and fear cycle. They also tend to make some other common mistakes such as trying to time the market, looking for short-term speculative gains, getting influenced by macro-economic noises etc. With an automatic, online, algorithm-driven investing tool like ARQ, a retail investor can take emotions out of the equation and benefit from equities as an asset class with a disciplined investment approach," Thakkar said.
"With ARQ, even the first-time investors can make small beginnings into the world of equities, with their desired levels of risk suitable to their stage of life and goals. This helps retail investors to get familiarized with the power of equities to generate the highest returns compared to other asset classes over the longer run and help them replicate this performance in their own portfolios through a scientific, disciplined approach," he added.