The Alpha

Exclusive AI System

Artificial Intelligence System

AI trading differs from forex robots or similar automated trading systems. A key feature of automated AI trading, compared to merely automating something, is its ability to understand which are the best and worst decisions to be made, for a given task and data set. The Alpha, however, is not available for purchase as it is an exclusive AI system designed for the Alpha Union internal use.

How It Identifies Profit Targets

The Alpha Algorithm

Using technical analysis, our algorithm not only considers the patterns of various trends, including support and resistance levels, and cross-indicators, but our AI trading system is also able to create its own real-time index for each currency pair that is used to identify the best direction and target.

Concerning fundamental analysis, the AI makes a correlation within the economic calendar to find news or data that can affect specific currency pairs. In doing so, the algorithm can identify the following scenarios:

Signal

Market inactivity to not trade or send signals.

Risk

Avoidance of certain risky entries.

Pattern

Measure favourable patterns after-events.

Our algorithm is a single multi-layer system integrated with some of the largest forex brokers via rest API and FIX protocol, and its parameters are optimised continuously to reach the best APY, Sharpe Ratio, and Drawdown. However, it does not change its core rules over time. We take extra precaution to avoid overfitting our models to any price data.

We use two main approaches to AI. The first is a search of maximum return and minimum drawdown using Multi-Objective Particle Swarm Optimisation, which can validate our indicators using a sliding window method to guarantee the best parameters for a certain encoding of indicators.

In this way, we selected the set of indicators to use in our second AI, settling a time series classification via Convolutional Neural Network, which the architecture is similar to an AlexNet with data augmentation, based on our own math concepts. This second AI indicates if it is the buy, sell, or hold, for given security.

Our most effective indicators are made by ourselves, primarily developed in Python as a real-time algorithm and based on out-of-sample back-testing. To evaluate our model, we chose the MQL language to demonstrate our results on the MetaTrader 5 (MT5) platform. Our main libraries are Matplotlib, NumPy, Pandas, Parallelism with ray remote, and Talib.

AI Trading System

Key Features

01.
Our AI trading system monitors and makes decisions to execute trades based on market movements. Hence, there is no need to continuously monitor the market manually during trading hours.
Eliminates the need for constant market monitoring
Fair and unbiased trading approach
02.
The AI trading system is unbiased and unaffected by human emotions. The emergence of big data and advanced AI algorithms help to generate useful solutions from the existence of a lot of data. With more associations and experience, The Alpha’s prediction accuracy will be greater.

Conventional trading done manually by humans, are greatly affected by many variables, including emotions and market rumours. This may lead to rash decision-making and irrational choices. On the other hand, The Alpha AI trading system generates decisions based on data, and the only variables are ‘buy’ and ‘sell’. Thus, it is more rational and objective as it will not be influenced by human decisions.
03.
The team at Alpha Union instructed our AI to run 14 years of sample back-testing on all 28 major forex currency pairs using deep learning. Moreover, it also integrates more than 100 different features combined, including sophisticated mathematical models, various timeframes, technical indicators, currency filters, economic news and more.

Thus, The Alpha assesses all the strategies in real-time to determine the course of action that will perform best during the current market conditions and recent historical price data. The decisions The Alpha makes are not pre-programmed but are made entirely by the AI trading system. The Alpha considers in real-time, the balance and type of contract the broker uses to calculate the position sizes for each trade and customer.
Unique trading methodologies
Consultation

Contact Us

We are a technology service provider that provides trading solutions. You can reach us by sending an email if you have any inquiry and we will respond to you as soon as possible.

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