A PURE TECHNOLOGY ORGANIZATION

building proprietory algorithms for capital markets

3sigma-financials is

an artificial intelligence fintech organization.

We are a pure technology organization building proprietary algorithms for internal consumption Our automated learning platform performs best during every market cycle. Finding money making needle in data haystack require a strong math and a technology backbone. Picking the right stocks consistently before other identify is our endeavor. Artificial intelligence can turn into a predominant tool for developing financial strategies that were previously considered difficult to predict because traders and hedge fund managers cannot compete with robots that can process huge amounts of data and constantly improve their forecasts, making investment decisions without emotion. Fund houses and fintech startups are investing enormous resources in building AI platforms for capital markets. In the near future, most jobs in the financial markets will be taken by robots.

Our automated learning platform performs best during every market cycle. Finding money making needle in data haystack require a strong math and a technology backbone. Picking the right stocks consistently before other identify is our endeavor. Artificial intelligence can turn into a predominant tool for developing financial strategies that were previously considered difficult to predict because traders and hedge fund managers cannot compete with robots that can process huge amounts of data and constantly improve their forecasts, making investment decisions without emotion. Fund houses and fintech startups are investing enormous resources in building AI platforms for capital markets. In the near future, most jobs in the financial markets will be taken by robots.

Trader trying to sell stock, before the advent of electronic boards and computer based trading.

photo: Courtesy US congress library

What is
a common investor doing?

Majority of the investing community make decisions based only upon recent information compared to all the available data can often lead investors to think current trends are the best predictors of what will happen next. Investors need to understand that capital market is influenced by a large number of variables. These variables are affected and affect hundreds or thousands of investors whose behavior is unpredictable Methods using technical analysis has a very limited repatability. Technical analysis provides technicians with a framework for self- delusion as if they have a measure of control over their investments. This is a necessary trait for active traders and investors who find it difficult to accept the fact that the future can not be predicted by generic approaches and approaches that are easily available. Most of the technical media analysts justify the past stock prices by correlating to a technical indicator. They rarely refer to the most recent failed recommendation(s), they face a limited consequence compared to an investor who lost money on that recommendation(s). Assuming that these media analysts have predictive capability, makes people assume they are smarter than the market and can "beat" it, is one of the most destructive psychological mistake.

Classic models for pricing does not cover the risks involved. These models were built when there was no computation power. They are too simplistic and don’t consider the influencing factors that derive an asset price.

Investments based on simple ratios such as price to earning or price to book does not reflect the true value of the asset, for example, within the same line of business, with similar balance sheets different companies have different price to earning and price to book. If factors other than financial statements decide the asset price at a point in time, isn’t it prudent to identify the factors that significantly influence the price and quantify them, this is exactly what 3sigma-financials does. Investors with accounting background or investors with accounting knowledge tend to rely heavily on the financial statemnts. These set of investors miss out on the dynamics of the changing environment and the impact on the invested companies. Investors who follow fundamental analysis also miss on important aspects of governance.

Individual investors need to understand that there exists the heaviest institutions in the capital market, with unlimited computing power, an endless pool of the most prestigious university graduates in the world, decades of market experience, zero trading fees, phenomenal trading speed and excellent access to public (and possibly internal) information. With all these resources at their disposal they incur loses by following failed and failing strategies.

In spite of all several odds, individual investors earn wealth and very few earned enormous wealth in capital markets who eventually founded institutions that became large and huge over time.

Eagle

An eagle is accurate, clever and powerful to be always a winner.