In the age of AI, it's easy to assume that every chatbot is just another ChatGPT clone. But what if I told you there's an AI assistant that can not only chat about stocks but also create and test complex trading strategies?
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Imagine an AI that can craft a portfolio of trading strategies, generate custom indicators, and analyze stocks based on their fundamentals. That's just scratching the surface of what Aurora can do. With nine unique capabilities that go far beyond simple conversation, Aurora is redefining what it means to be an AI assistant in the financial world.
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The nine unique features Aurora can currently do include:
- Creating a portfolio of trading strategies
- Creating a set of trading strategies
- Creating a customized condition
- Creating a unique indicator
- Testing a portfolio against historical data
- Analyzing specific stocks based on their fundamentals
- Finding new stocks based on their fundamentals
- Creating a watchlist
- Helping users learning about investing, trading, and finance
Let's talk about each of them in detail.
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1. Creating a portfolio of trading strategies
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In NexusTrade, a "portfolio" serves as the main object for interaction. It consists of a name, an initial value, and a collection of trading strategies. Portfolios can be tested on historical data through backtesting, optimized using complex mathematical algorithms, and deployed in live markets.
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Once a portfolio is created, it can be saved to your profile. From there, you can rename it, add strategies using the user interface, backtest it against past market data, and ultimately deploy it to trade in real-time.
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For experienced traders who already have a specific idea in mind, starting directly with a portfolio is encouraged. However, if you're new to NexusTrade or algorithmic trading in general, it might be more beneficial to start with creating individual trading strategies first. This approach provides a more guided experience and allows for building up to a comprehensive portfolio.
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2. Creating a set of trading strategy
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A trading strategy in NexusTrade is a set of rules that dictate when to buy or sell a stock or cryptocurrency. Each strategy is composed of the following elements:
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- Asset: The financial instrument being traded, such as Apple, Tesla, Bitcoin, or an ETF like SPY.
- Action: The type of trade, such as buying or selling.
- Amount: The quantity or value to trade, which can be specified in dollars, shares, or a percentage of your buying power.
- Condition: A true/false market observation that triggers the action.
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After creating a strategy, it can be applied to any number of portfolios. You can save the strategy in your library and use it to construct or enhance a portfolio.
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While it's not mandatory to create a strategy before building a portfolio, doing so can be advantageous, especially for newcomers. Creating individual strategies first provides a more manageable learning curve and helps in understanding how different strategies can be combined into a cohesive portfolio. This step-by-step approach can also help in building confidence before diving into more complex tasks like portfolio creation.
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In NexusTrade, a condition is an observation about the market that determines when a trading action should be executed. There are two main types of conditions:
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- Simple Conditions: These are straightforward observations, such as "SPY's price is above its 50-day moving average."
- Compound Conditions: These combine two or more simple conditions using logical operators like "And" or "Or." For example, "SPY's price is above its 50-day moving average and below its 200-day moving average."
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Conditions are crucial as they control the decision-making process for your trading strategies. They can be tailored to be as strict or as frequent as needed, allowing for flexible trading logic. Simple conditions are built using indicators, which are metrics or formulas that help analyze the market. By combining these conditions, you can create intricate rules that guide your trading strategies.
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Creating a condition in NexusTrade is an essential step in defining when your trading strategies should act. It allows you to add a layer of specificity to your strategies, ensuring that trades are executed under the exact market circumstances you deem optimal.
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In NexusTrade, an indicator is a versatile tool that goes beyond the traditional definition. While in the financial context, an indicator typically refers to a statistical metric or formula used to analyze market trends—such as moving averages, relative strength index (RSI), or moving average convergence divergence (MACD)—NexusTrade expands this concept.
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Here, an indicator is defined as anything that evaluates to a number. This broad definition allows for a wide range of metrics, including:
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- Traditional technical indicators like moving averages and RSI.
- Fundamental indicators such as revenue, net income, free cash flow, and P/E ratio.
- Contextual metrics, like the day of the week or the number of days since the last asset purchase.
- Custom indicators, including those that can incorporate external data like sentiment analysis or economic indicators.
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This flexible approach enables users to create unique and innovative trading strategies. The broad definition allows for seamless integration of various data points, whether they're traditional technical indicators or unique metrics derived from user-specific insights. As long as it can be represented as a number, it can be used in NexusTrade, offering unparalleled versatility in crafting trading strategies.
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5. Testing a portfolio against historical data
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Testing a portfolio against historical data, known as backtesting, is a crucial step in developing a successful trading strategy. In NexusTrade, you can conduct this process directly within the platform in a couple of ways.
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One option is to use the "View Portfolios" or "View Strategies" features to perform quicktests. This opens a modal where you can quickly evaluate a portfolio's historical performance against benchmarks like SPY, the ETF that represents the broader market, and the "gold-standard" trading strategy. This method provides a rapid overview of how your strategies would have performed in the past.
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Alternatively, you can ask Aurora, the AI agent in NexusTrade, to launch a backtest directly through the chat interface. This method offers more flexibility, allowing you to customize the asset you want to compare your portfolio to and interpret specific historical events, like "Covid-19" or "the 2008 financial crisis," without manually searching for exact dates.
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Backtesting empowers you to refine and optimize your trading strategies by analyzing how they would have performed under various market conditions. By understanding the strengths and weaknesses of your strategies through historical data, you can make more informed decisions when deploying them in real-time trading.
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6. Analyzing stocks based on their fundamental metrics
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NexusTrade provides a robust feature for analyzing specific stocks based on their fundamentals, setting it apart from other platforms. Rather than just viewing a stock as a fluctuating price on a chart, NexusTrade allows you to delve into the business behind the stock. This involves examining key financial metrics such as earnings, revenue growth, expenses, and profitability.
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Aurora, NexusTrade's AI agent, makes this process intuitive and insightful. You can simply ask Aurora to analyze a company or a list of companies, and it will guide you through their financials. It can compare metrics like quarterly earnings, revenue trends, and other financial health indicators, giving you a comprehensive understanding of each company's performance.
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This feature isn't just about providing data; it's about making sense of it. Aurora can help interpret complex financial information, offering insights into why a company's fundamentals might make it a good investment. By using this tool, you can make more informed decisions, building trading strategies around fundamentally strong stocks that are more likely to outperform over the long term.
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With the aid of AI, NexusTrade empowers users to conduct in-depth financial analysis, leveling the playing field for retail investors to make smarter, data-driven investment choices.
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7. Finding novel investment opportunities with AI
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NexusTrade simplifies the process of discovering new investment opportunities by leveraging fundamental data, moving away from the traditional reliance on hype, opinions, or biased sources. With the AI-powered stock screener, you can find stocks that meet specific criteria using natural language queries.
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For example, if you're interested in identifying up-and-coming biotechnology stocks, you could ask, "What biotechnology stocks had a revenue growth of 60% or more since last year and are profitable? Sort by market cap descending." Aurora will then search through the stock database and return a neatly formatted list of companies that match these criteria.
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This feature is powerful because it allows you to find stocks based on objective financial metrics rather than relying on speculation or external influences. It empowers you to make data-driven decisions, ensuring that the stocks you consider for your portfolio align with the investment criteria that matter most to you.
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By providing an easy way to discover new stocks based on their fundamentals, NexusTrade opens up a world of potential investment opportunities, helping you uncover hidden gems in the market that might otherwise go unnoticed.
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8. Creating a customized watchlist
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NexusTrade also offers a feature where you can create a watchlist to track investment opportunities, much like platforms such as Apple Stocks or Robinhood. However, the difference lies in NexusTrade's integration of AI capabilities, allowing you to create and manage your watchlist either manually or through AI-assisted suggestions.
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Creating a watchlist in NexusTrade involves more than just adding stocks; it's about keeping up-to-date with important news and market developments related to the stocks you care about. For instance, if you had Eli Lilly in your watchlist, you would be automatically notified about significant events like FDA approvals of new drugs—information that could be crucial for making timely investment decisions.
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The process is designed to be intuitive: you can simply tell Aurora, the AI chat agent, which stocks you're interested in monitoring, and it can add them to your watchlist. Alternatively, you can manually search for and add stocks based on your research or recommendations.
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This feature not helps you keep a close eye on potential investments and ensures you're informed about relevant news, allowing you to make more informed decisions quickly. Whether you're a seasoned investor or just starting out, having a tailored watchlist can significantly enhance your trading strategy by providing targeted, real-time information that matters to you.
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9. Helping users learning about investing
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One of the standout features of NexusTrade is its ability to educate users on investing, trading, and financial concepts. Aurora, the AI assistant, goes beyond executing tasks—it serves as a learning companion, capable of explaining complex financial topics in a way that is both engaging and easy to understand.
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For instance, if you're curious about how options work, you can ask Aurora to explain it, and it can provide a detailed yet relatable explanation. As shown in an example, I asked Aurora to use Fortnite analogies to break down the concept of options, making it accessible and memorable. This approach to learning helps demystify intricate trading concepts, making them more approachable for users at any level of experience.
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This personalized educational support is invaluable for users who want to build their knowledge and confidence in making investment decisions.
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By incorporating educational elements directly into the platform, NexusTrade empowers users to become more informed investors, fostering a deeper understanding of the market and trading principles. This feature makes the platform not just a tool for executing trades but also a resource for continuous learning and improvement in the world of finance.
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In addition to the wide array of feature above, other useful features include:
- Customizing Models: Aurora can be used with various AI models, including the latest o1 and o1-mini models, allowing for flexibility in choosing the model that best suits your needs.
- Intelligent Routing: The AI is designed to detect your intentions and focus on specific actions, streamlining the interaction and improving the user experience.
- Sharing Conversations: You can easily share your conversations with friends with just a click, making it simple to showcase strategies or insights you've discussed with Aurora.
- Adding Attachments: Easily create objects like strategies, conditions, indicators, and portfolios as "attachments." This feature allows you to quickly create items that are similar to what you've previously created or incorporate existing strategies into new conversations.
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These additional features further enhance the usability and integration of Aurora within NexusTrade, making it a powerful and versatile tool for both managing investments and learning about trading strategies.
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Many AI apps are just simple GPT wrappers, but NexusTrade is a clear exception. Not only does it give you access to powerful tools to perform financial research, but it also allows you to build, test, and deploy automated trading strategies. It demonstrates the power of AI in Finance.
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This AI trading platform is truly like no other. With exciting developments (like OpenAI’s o1 model), this platform is truly just getting started with bringing legitimate value using AI to retail investors everywhere.
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Now that you know what sets NexusTrade apart, go find some new stock opportunities? This time, you’ll be able to do so using objective fundamental data. Feel yourself become a better investor and share your feedback with me in the comments.
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♻️ Impressed by Aurora's capabilities? Forward this article to a friend interested in investing!
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