Estimated AI Trading Profit
While Tickeron AI does not execute trades for customers at this time, the AI tool does provide a profitability estimate. "All Tickeron Robots trade without human involvement or decision-making. The Buy/Sell Alert Robot uses our groundbreaking technology to condense trading recommendations in an easy-to-track portfolio. This feature allows users to see how much profit they would make had they applied the alerts to their real-money portfolios,” said Sergey Savastiouk, CEO and founder of Tickeron.
Since the AI tool provides estimated profit information, it cannot be directly compared to an algorithmic trading company, where transactions are wholly or partly automated. In addition to its new AI tool, the business provides other AI tools such as an AI real-time patterns app that aids in day trading for stocks and ETFs (i.e., exchange-traded funds). Tickeron provides business information and alerts, but it does not directly execute trades for investors.
However, Tickeron faces competition from investing services that offer AI and direct trading to investors. Betterment, a roboadvisor, has $18 billion in assets under management. Personal Capital has $16 billion in assets, while Wealthfront has $15 billion in assets under management. Notably, Wealthfront has an AI investing feature called Autopilot that automates savings. The increasing sophistication of AI tools offered by roboadvisors presents a business challenge to a business media company like Tickeron.
The Boom in Day Trading
The release of AI investing tools aimed at individual investors is part of a broader trend of retail investing. An increasing number of US retail investors are taking on significant debt. A Bank of International Settlements report said margin debt in the US rose to $750 billion in December 2020, the highest level since 1997 in inflation-adjusted terms. Margin debt allows an investor to borrow additional money from a brokerage company to invest. The bank finds that growing retail investing activity in 2021 focuses on call options and smaller stocks.
Several factors drive the surge in retail investing. A few high-profile investing success stories, such as the rise of GameStop (a retail video game business) in early 2021 and the boom in Dogecoin, a cryptocurrency, have captured more interest in the business and investor community. In addition, COVID-19 lockdown measures have given some people additional savings and free time to put into day trading activities. Finally, government policy in the form of low-interest rates and direct payments to individuals further enables investing for some individuals.
While Tickeron may lack the business capability to execute trades for investors, the company is building other features. For example, the company has launched investor clubs that have been described as “an SEC-compliant space to share ideas and allow investors to collaborate.” That description may be an indirect reference to the Reddit effect, which has driven multiple stocks to record highs over the past year.
About the Author
Bruce Harpham is an author and marketing consultant based in Canada. His first book, "Project Managers At Work," shared real-world success lessons from NASA, Google, and other organizations. His articles have been published in CIO.com, InfoWorld, Canadian Business, and other organizations. Visit BruceHarpham.com for articles, interviews with tech leaders, and updates on future books.