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Screenshot of a breaking news alert e-mail from Q2 2017
CySEC regulated mobile trading specialist Capital Com SV Investments Limited, which operates the Capital.com brand, has announced the release of its SmartFeed technology. CEO Kira Bondareva proclaims SmartFeed as “one of the most exciting features of Capital.com’s app.”
SmartFeed, backed by AI technology, is a smart tool able to track investors’ behaviour, detect cognitive biases and provide tailored educational materials and financial news to advance their investment skills.
Capital.com’s COO Anastasiya Akula, speaking of the tool said:
By harnessing the power of AI, particularly through the app’s advanced SmartFeed function, Capital.com seeks to educate and inform users, and promote a thoughtful, intelligent, and sophisticated approach to trading, while helping to expand market access.
She continues to explain how the powerful SmartFeed works:
Say you purchased an Apple stock, it grew a bit, then you sold it. You did the same three times. You start feeling that you know everything. You put all your money in Snapchat stocks — which unfortunately drop in price and cause you to lose everything. This is overconfidence bias, which the SmartFeed technology can detect and address.
It may be but one example of bias, however SmartFeed’s capabilities expand to detect Disposition, Martingale and Loss Aversion biases, with others soon to be added to its growing repertoire.
As a user trades with the Capital.com app, the SmartFeed works to discover if a user is affected by any bias. If it detects one the user is then presented with tailored content including feature articles, financial material written by professional financial writers and psychologists, and a personalised newsfeed built using algorithms that detect a users’ trading interests. All aimed at addressing that specific bias.
SmartFeed is rooted in economic behavioural science. Italian researchers found that by reminding traders of biases, their trading performance tended to improve. By conducting an experiment with two test groups of students – one group who were reminded daily of trading biases via text message, with their trading performance monitored and another group who were not sent such notifications.
Researchers compared the results and found that those students who received continual awareness of biases performed significantly better than those who didn’t. A simple but brilliant idea – to inform – that has major implications for the fintech industry.
This concept is the basis of the innovative SmartFeed technology. CEO Kira Bondareva confirms:
SmartFeed is seeking to create smart traders by targeting biases and is set to revolutionise the way we make trading decisions.
Capital.com is a fintech startup providing an AI-powered trading platform, designed to take trading to the next level. Available on both desktop and smartphone, the trading platform lets users trade CFDs on the world’s top markets including Forex, cryptocurrencies, commodities, indices and more. Capital.com received a $25 million investment from VP Capital and Larnabel Ventures. Capital.com is licensed by Cyprus financial regulator CySEC.