Tuesday, 26 October 2021

Trading FinTech Startups.

Trading startups are competing in the model building market, they are offering a variety of services to professionals and individual traders.


- Models are sold as IP intellectual property through subscription, 

- Predicted prices are sold trough an API service,

- Compute speed is empowered by accessing cloud capacity,

- Cryptocurrencies are popularized.


Those are the recent trends in the trading FinTech startups.


Cryptocurrency

On the 4.October .2021 panoramic ventures published an article announcing DEFY TRENDS as a co-winner of September Startupshowdown, it's a tool for cryptocurrencies trading that use AI and data analytics to allow users to access forecasting, data analysis, dashboards, indexes, recommendations and education. 


Cryptocurrencies is a new market for trading platforms but it's also a quickly already crowded place.


Forecast

On the 13. Sep. 2021 venture.ch published a video on YouTube announcing AISOT as the second place winner in the Finance & insurance category. AISOT is in the forecast business, this mean that they offer a service to trader that consist on predicting future financial assets price change, to simplify AISOT is developing predictive algorithms to tell if the market price gonna go up or down, a trader will buy a stock if he know that it's price will rise in the future, or sell if he know that the price gonna go down.


Be the first to know, this is how people make money on the stock market.



Speed and Accuracy of prediction, that's what makes the quality of an algorithm, of course reaching 100% is complex or impossible but pushing the limit of accuracy that's the dream of people building predictive algorithms. Think about the weather forecast, nowadays we can know that it will rain at 4 PM.


Speed

On the 4.May.2021 onRamp insurance accelerator published a press release announcing riskfuelAI as a 2021 cohort member with a 100,000 USD investment, riskfuelAI is a startup in the valuation business, it's a very technical and sophisticated sub-field in finance that specialize in calculating the value of financial instruments. To simplify we can say that engineers use nested, complex, precise and very long and advanced mathematical formula to define the price or value of a financial instrument, and this price is changing over time.


Valuation seek to answer this question: How much?


This make sens in banks and insurance trading rooms where traders monitor market prices and their portfolio valuation and potential earnings or losses to make informed decision like sell or buy for example.


Riskfuel is using cloud compute extensive capacity and performance to give traders access to real time valuation. 


Algorithms marketplace

On the 7 February 2021, impact ventures twitted ALGOPEAR as the winner of impact ventures pitch competition. It's an algorithmic stock trading app that allow users to trade stocks with proven algorithms.


To simplify we can say that algorithmic trading is possible when a software can sell and buy stock autonomously like a robot, you do not have to do anything. You just have to adjust the settings like: 


buy when the price is lower than X

sell when the price is higher than Y


ALGOPEAR is also a marketplace for algo creators where they can sell their algorithm as an intellectual property and where the app users called retail traders can subscribe to those algorithms.

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