In our previous blog post, we introduced you to AivelX, a groundbreaking trading algorithm with the potential to transform the world of algorithmic trading.
In this post, we will delve deeper into the technology and techniques that power AivelX, offering a unique data-driven approach to trading in stocks, forex, and cryptocurrency markets.
As a new player in the market, AivelX's mission is to pave the way for innovative solutions that can help traders optimize their strategies, manage risks effectively, and increase their chances of success.
Holistic Approach: Drawing Data from a Vast Historical Dataset
AivelX's key strength lies in its ability to analyze a vast array of data points, taking into account over 350 different metrics on any time frame that ranges from daily to yearly. These metrics encompass a wide range of aspects, such as moving averages, trend strength, momentum, convergence and divergence, directional indicators, money flow, volume, and various oscillators, all developed and programmed internally via Pine Script on TradingView.
By evaluating key price relationships and comparing them with over 50 years of data for more than 1,500 different stocks, AivelX identifies meaningful patterns and trends in the market, uncovering valuable insights for traders.
Sectors Tracked by AivelX
AivelX offers comprehensive coverage of a wide array of market sectors, providing in-depth analysis and insights for traders. The algorithm tracks all stocks with a price above $3, a history of more than 5 years since their IPO, and a market cap exceeding 1 billion dollars.
By including stocks from various industries, AivelX ensures a well-rounded analysis, empowering traders to make informed decisions based on a diverse data set. As the platform continues to evolve, the number of tracked stocks will increase, keeping AivelX up-to-date and relevant in the ever-changing landscape of algorithmic trading.
Two Years of Development: Comprehensive Time Frame Analysis
AivelX's comprehensive time frame analysis offers a complete view of the market situation for each stock, providing users with valuable insights into market trends and potential trading opportunities.
One of its key strengths is its ability to accurately identify potential reversals across all time frames, employing a carefully selected and tested approach that ensures a consistent and objective analysis of a stock's historical data.
Furthermore, every day after the market close, the algorithm can bulk-check any stock in just a few seconds, providing users with the most up-to-date data and analysis.
Overcoming Inconsistent Backtesting Results with Traditional Market Indicators
AivelX addresses the problem of inconsistent backtesting results with common market indicators by offering a comprehensive, data-driven approach that provides more reliable insights.
Each new indicator added to the algorithm is automatically backtested within the tracked data to ensure the outcome is optimized for each market condition.
AivelX identified that in some market conditions, a top only occurs when one specific moving average slopes higher. If a reversal is validated while the moving average is still sloping lower or sideways, traders will be able to enter new positions with an extremely high probability of trade success.
A trade that benefited from this particular insight was on ticker $SERA. AivelX confirmed the reversal with the stock price at 2.45 and the stock moved over +73% over the next 17 trading sessions.
In certain market conditions, the probability to be alerted of a long setup when a set of moving averages are stacked in a specific order is close to 0. With this insight, AivelX identified a short setup on ticker $TSLA on September 2022, and once validated it kept providing daily insights on the trade, pointing at key level 122 (-61%) early into the trade and allowing traders to avoid buy-the-dip attempts along the way.
Taking into account multiple time frames, it then correctly identified 196 and 216 as key levels for the +113% bounce that followed.
By leveraging AI and machine learning, AivelX generates actionable insights that help traders navigate the market with greater confidence, anticipating high-probability outcomes in any market condition. This advanced analysis empowers traders to make more informed decisions and take advantage of opportunities presented by the market.
Note: Both examples provided have documented timestamps on when the trades and key levels were initially alerted on the private Discord community.
Key Features and Insights: Multi-Term Outlook, AI Score, Price Targets, Progress and Probabilities
Incorporating this wealth of data and advanced analysis, AivelX generates actionable insights for traders, such as:
Based on the machine learning results of the probability calculations derived from historical data, the AI score provides an overall assessment of the trade opportunity, offering a clear and concise perspective on the potential success of a trade.
AivelX provides price targets along with information about how far they are from the current close and the probability for the price targets to be hit. This probability is calculated objectively by checking how many reference trades provided to the user actually met the price target. This straightforward data enables traders to easily assess the likelihood of reaching the target, removing any uncertainty or complex interpretations.
To give users a better idea of the estimated time of a trade, the progress is calculated based on how long reference trades have taken to complete. This is displayed as a percentage for the trade, simplifying the tracking of trade development and helping traders make informed decisions.
Note: A progress higher than 100% means that the current trade is taking longer than the average of the reference trades presented.
Top/Bottom this Week/Month
The algorithm also displays the likelihood of a top or a bottom taking place during the current week and month. This clear and unambiguous information helps users gauge whether a pullback might occur, and if the trend is likely to continue higher or lower afterward.
AivelX's streamlined output is designed to provide traders with easy-to-understand data, eliminating the need for complex interpretations and enabling them to focus on the most probable outcomes in any stock market condition.
Versatility in Trading: Customization and Adaptability
AivelX is designed with flexibility in mind, allowing traders to integrate the results of the algorithm with their existing strategies and preferences.
By providing probabilities for reaching specific key levels and trend continuation, AivelX can reinforce the confidence traders have in their trading setups while helping them avoid making mistakes by going against the odds. This adaptable nature enables AivelX to accommodate a wide range of trading styles, ensuring that traders can make the most of the algorithm's powerful estimates and improve their decision-making in any market situation.
As AivelX continues to develop and evolve, it remains at the forefront of the trading landscape, offering traders the most advanced tools and resources to help them navigate the complex world of stocks, forex, and cryptocurrency.
In our upcoming blog posts, we'll discuss the progress made to date, some of the innovative ideas in our pipeline, and our technical goals.
We'll also shed light on how we are going to leverage the power of our exclusive community to continually add new features, make improvements, and collaborate on ensuring that AivelX remains steps ahead of the ever-evolving markets.
Join us on this exciting journey as we continue to grow and innovate, shaping the future of trading together.