Capital.com, a cutting edge fintech company, is today announcing that a patent for its unique AI trade bias detection system has been approved.
The patent, titled ‘SELF-ADAPTIVE, SELF-TRAINED COMPUTER ENGINES BASED ON MACHINE LEARNING AND METHODS OF USE THEREOF’, was approved by the United States Patent and Trademark Office under patent no. 15/949,775.
Based on machine learning, the technology, branded ‘eQ’, detects cognitive biases that often prevent clients from making disciplined trading decisions. What traders believe are valid judgements may in fact be the results of effort-saving mechanisms by the brain. Supposedly rational decisions may stem from mental shortcuts that ignore chunks of information, which can then have a significant impact on traders’ results.
Not only does the technology detect and notify the trader when they might be exhibiting certain behavioural patterns associated with a particular bias, such as overconfidence or loss aversion, it simultaneously offers targeted personalised tips and post-trade performance breakdowns to help the trader make more informed and risk-aware trading decisions in the future.
Helping clients trade smarter
The user is at the very core of Capital.com’s ethos. The company is on a mission to create the world’s most beautiful and functional trading experience. Capital.com’s award-winning platform is designed to offer the client a powerful and easy-to-use solution that deploys state-of-the-art technology to augment their decision-making.
Available on the web and mobile, Capital.com’s user-friendly, AI-powered system is trained to detect 35 behavioural patterns that commonly affect trading behaviour. It does this by combining several metrics, including recent trade performance and even the articles being read from the app’s News Feed. It can then provide personalised feedback to help the user make smarter decisions when placing a trade, nudging clients towards educational resources that could help refine their trading approach. The end goal is to help clients keep more of what they earn – and for longer.
Making the most of eQ
According to the company’s research, the launch of the eQ system in January 2019 significantly improved clients’ trade performance. By comparing the data of new clients*, Capital.com found that the number of clients who read the eQ messages and experienced closeouts was 11% lower than those who didn’t read the messages. The number of profitable newcomers to Capital.com’s platform was also higher by 6.5%, while the number of newcomers with an average win to average loss ratio of more than 0.7 was up by 10%.
The most promising result was obtained through analysing the number of newcomers who made their first trade a month before launching the eQ system. Among clients who read the eQ messages, the number of profitable clients was higher by 12% and the number of newcomers with an average win higher than their average loss was higher by 11%.
The future of trading
Capital.com offers access to 2,000 of the world’s biggest and most popular markets across indices, shares, commodities, cryptocurrencies, and forex pairs. From Apple and Bitcoin to the DAX 30 and GBP/USD and many more, users can trade on both the web and mobile with a simple, intuitive, and award-winning platform tailored to help them trade smarter.
The company is proud to offer industry-leading spreads on some of the biggest European markets – including the DAX 30 index (as low as 0.9 pips), EUR/USD (as low as 0.4 pips), and gold (as low as 0.23 pips) – and absolutely no commission on day trades. New instruments, such as LYFT and a host of Dutch stocks, have been added to the platform in recent weeks.
Capital.com is committed to the safety and protection of client funds. With negative balance protection, clients are able to trade with confidence, knowing that they will never lose more than they put in, while take-profit and stop-loss orders means clients can keep more of what they earn. And with Investmate, the company’s five-star-rated educational mobile app, Capital.com offers its clients the opportunity to stay more informed about the financial markets than ever before, with free guides, quizzes, and video tutorials tailored to all abilities.
Capital.com won the award for Best Trading App according to the UK Forex Awards in 2018. It has also won the award for Most Innovative Broker and Most Transparent Brokerage Service Provider at the European Forex Awards in 2018 and the award for Best Online Trading Services 2018 by Shares magazine.
*Capital.com analysed the data of new clients who made their first trade during the first two months of eQ’s launch (February – March 2019) and those who made their first trade one month prior to its launch.