Leading trader and financial analyst Miles Deutscher has developed an AI-based software application for use in quantitative trading. The tool utilizes the GARCH algorithm, enabling users to calculate market volatility and determine their position size accordingly.
A Breakthrough in Market Volatility Forecasting
Miles Deutscher says the latest free AI offering for quantitative trading is built on the GARCH model, which stands for Generalized Autoregressive Conditional Heteroskedasticity. It is an advanced statistical method that any professional would be familiar with and one that does a good job of forecasting market volatility. For those in the crypto space, where conditions can change in an instant, such predictions are key to risk management.
Deutscher’s intention in making this available at no cost is to open the door for retail traders and independent analysts who might otherwise be shut out. With the tool at their disposal, they are better equipped to spot price movements ahead of time and act on the insights it provides.
Practical Impact: Position Sizing and Risk Management
The host of Miles Deutscher Finance has pointed out that the free AI tool for quantitative trading does more than simply highlight volatility. It is an aid to risk management, helping traders size their positions in a way that is optimal for the current market.
In much the same way institutional investors have long done, one can employ these quantitative methods with this tool and trade with a good deal of confidence. Incorporating it into a strategy is a way to improve overall performance while limiting exposure to unforeseen market moves.
Source — Miles Deutscher Finance: https://www.youtube.com/watch?v=EX5rtpX76Ak