Artificial Intelligence has seemingly reared its powerful head in so many areas of life nowadays that it should not come as a surprise that this now includes investing and day trading. Even the venerable investment broker and analyst Morgan Stanley is now using such deep learning algorithms to test out ideas and fine tune their own investment strategies generated by their in-house analyst teams. These algorithms have even begun to enter into the universe of exchange traded funds thanks to two products provided by EquBot. These include the AI Powered Equity ETF (AIEQ) and the AI International Fund (AIIQ). In this review, we look at what EquBot has to offer you for trading strategies and tools to improve your own results.
EquBot founders point out that a sobering 90 percent of all market data that presently exists was developed and became available in only the last two years. There is now a rapidly growing gap between information available and the amount of it that people can absorb for their analysis. A great amount of the data is not what you would call tradition, such as satellite images, social media posts, and even patterns of website traffic that need to be organized and effectively analyzed in order to provide traders with an edge in the markets.
Enter EquBot with its noble mission to:
“Democratize the power of A.I. in the investment process and provide everyone with access to investment opportunities that artificial intelligence can uncover.”
The disrupting company’s story started back in year 2015 at the University of California Berkeley Hass School of Business. Here the eventual founders of EquBot would meet and begin to talk about investing, artificial intelligence, and the ways in which the two world could meet and merge. In their time as students together, they continuously encouraged one another to challenge conventional understanding using their varying backgrounds in engineering and investment management. They elected to build something together that would offer a unique and compelling proposition for investors and day traders.
It was when they managed to bring IBM on board that the project became really fascinating. The 2016 completed “Startup with IBM” program brought Big Blue in with technology and tools to help them move their product to the markets quicker. IBM brought its latest big gun to bear in the form of the potent Watson Computer platform.
Their investing algorithm now works to achieve capital appreciation. This fund is both managed actively and looks to invest in mostly U.S. exchange listed equities based on the results of their program’s quantitative model (called the proprietary EquBot Model). The sub-adviser to this fund is the EquBot program that runs on the patented IBM Watson platform.
It was actually three U.C. Berkeley friends who founded EquBot together after graduating with degrees in engineering and investment management. They have since led the vanguard of teaching machines how to use A.I. in leading Silicon Valley tech companies including Intel and managing enormous billions of dollars of portfolios for Goldman Sachs and Fidelity. The three friends who are all still actively involved in managing EquBot between them count five degrees from both Stanford and U.C. Berkeley. We look at Chida Khatua, Art Amador, and Chris Natividad next.
Chida is the co-founder and CEO of this company EquBot. He offers the firm over 17 years worth of experience in machine learning and A.I. He served 18 years as Intel’s Director of Engineering and in founding his own startup called Bumperglass.
Chida has received a few patents in software, hardware, and technology. Business Insider has honored him as one of their “Top 10 People Transforming Investing” and also as among their “Top 100 People Transforming Business.” His degrees from the Haas Business School in U.C. Berkeley include a MBA, while he also counts a Masters in Electrical Engineering from Stanford and a Masters from the Indian Institute of Science in Electrical Engineering, as well as a Bachelor of Engineering from VSSUT Burla.
Art Amador is the co-founder and COO for EquBot. His over a decade of solid experience in the industry of investment management is invaluable to the company. He served more than eight years as the Fidelity Investments Vice President. In this post he oversaw more than $1.3 billion in assets. Fidelity recognized him as its top consultant within the United States back in year 2012. He has the Certified Financial Planner designation along with his U.C. Berkeley Haas Business School MBA, and also a Bachelor of Science in Financial Services that he obtained from San Diego State University from which he graduated as top of his class with Magna Cum Laude distinction.
The co-founder and CIO of EquBot is Chris Natividad. He brings to the table over 14 years as an institutional investment manager. Chris served before this as the Gilead Sciences Investment Portfolio Manager and also the manager for Apple’s Braeburn Capital. In these capacities he managed over billions of dollars in offshore and onshore investment portfolios. He also has served in a range of analysis and management positions for such important companies as Franklin Templeton and Goldman Sachs. Chris holds degrees from U.C. Berkeley that include his BA, BS, and MBA.
EquBot’s smart algorithms function in much the way as the one that Morgan Stanley is utilizing to strengthen the calls from its own in-house analysts. The IBM machine that underlies the ETF algorithm reads through incredible quantities of more than one million data pieces each day. This includes earnings reports, SEC filings, news stories, and even social media posts so that it can decide on the stocks that it believes will move higher.
The company managed to combine the artificial intelligence created by IBM with their own proprietary model to come up with EquBot. The artificial intelligence program then has the power to daily replicate the work of an incredible 3,000 research analysts. It does this Herculean task on behalf of the two funds it manages in AIEQ the AI Powered Equity fund and the AIIQ AI Powered International Equity. They have brought in over $150 million in joint assets since the project launched around a year and a half ago.
Part of the sheer power of this program is its ability to autonomously rebalance its portfolios every single day as needed. A great advantage that it possesses over human analysts and investment managers is that only data drives it. There is no natural human bias involved in the decision-making process of investing. The model is adaptive so that it is based upon market conditions and learns and improves itself each day.
This literally means that the smart bot is only growing more intelligent over time. In its second most recent product the AIIE AI Powered International Equity fund, it contemplates all international markets and equities from all of the developed nations including Canada and South Korea.
EquBot is different from some of the other competing products that we have reviewed in this A.I. Investing series in that you can not pay a monthly membership fee to receive picks from it. Instead, you can take advantage of two of its proprietary funds as a passive investor. We look at what EquBot offers the investing world here next.
EquBot’s simple to utilize and understand artificial intelligence platform is able to analyze and even create different kinds of portfolios through harnessing its proprietary machine learning and algorithms (along with its knowledge graph) besides the power of IBM Watson’s incomparable language processing. It means that investors are able to do more than simply keep up to speed with the growing and more complicated universe of data overload. They can revel in it.
This EquBot proprietary model uses the alliance with the IBM Watson platform in order to compute and compile in excess of a million individual points of data every single day. These include social media posts, financial news articles, financial statements, quarterly reports, and SEC filings. The model can then gather them all together to construct its famous predicting financial model for literally thousands of individual international add national firms in order to come up with positioning entry points and timing. It allows for superior stock selection and higher possible capital appreciation as an end-result. This EquBot customizable protocol is today trusted by such major international banking giants as HSBC of London, Hong Kong, and Shanghai and insurance companies like Athene the world’s second biggest index annuities carrier as well as asset managers around the U.S. and world.
EquBot runs the multi-billion dollar AIEQ fund. As an enormous money under management asset manager, EquBot ‘s artificial intelligence has the sheer compiling and research power of over 1,000 individual research analysts working non-stop. EquBot also boasts all of the following characteristics:
The International Equity ETF AIIQ is another second offering from the EquBot gang. For peopoe who want an A.I.-derived exposure to top stock picks in the developed world outside of the United States, this is the place to be. The fund is made up of international stocks and REITSs real estate investment trusts from developed economies such as Great Britain, Netherlands, Germany, France, Italy, Japan, South Korea, Canada, Singapore, and Australia, among others.
In order to gain access to the brilliance of IBM Watson, Big Blue’s proprietary artificial intelligence wiz machine, you can sign on to one of the investment funds that EquBot offers. This is because the Watson A.I. is the cognitive computing platform that assists EquBot’s proprietary algorithms in understanding and accessing social media and more. Watson connects with huge amounts of structured spreadsheet data as well as unstructured data such as news articles and social media posts in order to learn with every analysis it undertakes to come up with better answers on every question. In a spooky new reality, Watson is the first major computer to be capable of learning like humans do, using learning, senses, and experience.
You can not subscribe to a monthly or annual plan with EquBot. The only way for a retail investor or day trader to participate is through one of their two proprietary funds. We look at this in more detail in the final section of the review.
The recommended way to get into touch with EquBot is through their contact form. The site promises that one of their in-house representatives will then contact you to discuss their solutions. The contact us page also lists out their email and phone for other forms of contact as email@example.com and (650) 451-5497.
Since you can not pick up a recurring membership to EquBot as a retail investor, there is not really a pricing or payment options. What you can do is to purchase shares in one or both of their two proprietary ETF funds AIEQ or AIIQ. The expense ratios for these two artificial intelligence powered funds are .77% for AIEQ and .79% for AIIQ. These fees are on par with many competing ETF expenses and mutual fund charges.
EquBot delivers its fans and followers two separate investment vehicles and several powerful platforms as products and services based on analysis of a million traditional and non-traditional data points. These include all of the following four services and products:
Equbot AI Platform
Equbot AI Powered Equity (Domestic) ETF
EquBot AIIQ (International) Fund
EquBot IBM Watson Collaboration
EquBot is an unusual offering in this category of A.I.-driven investments in stocks. While you can not subscribe to a service, chatroom, or newsletter, they do have two pre-packaged investment vehicles for you in their domestically oriented AIEQ and their international only AIIQ funds. Both are open to retail investors and have very reasonable fees and charges. These have been outperforming their underlying markets admirably well more or less since inception. It would seem like it is hard to go wrong with a partial allocation to one or both of these funds.
Phone: (650) 451-5497