Proprietary Trading Chronicles - Technicals

The markets are in a constant motion. You have to adapt quickly and incorporate multiple layers of information, price change, events and volume at a high pace. To be able to do that, especially in the current environment and competition from algorithms, funds and 0DTE options, a professional trading desk like Wealth Mill has partered with Squadron Technologies Ltd to bring to the table a state of the art AI driven research platform called MarketAlpha.ai.

What initially started as an in-house screener to improve stock selection and research, was later transformed by a mathematical and programming professional Ilja Bluemin with the help of Zelh Tech into a standalone sophisticated research, analysis, visualization tool that helps traders improve their research time and customize their most detailed metrics. The idea is to save the most amount of time from the research and focus on the execution. MarketAlpha.ai can now do that with the help of advanced technological solutions with the elements of Artificial Intelligence.

Wealth Mill & Technical Analysis

On the way to improve the edge, many of our traders decided to start learning for the CMT Certification. While researching the material and passing the examinations, the knowledge behind creates very specific metrics that are adding to the edge of active Swing and Day Trading.

There are many debates on the topic of Technical Analysis and theories why it may or may not work as an toolbox for consistent alpha generation. Through our internal studies and research we found that its not always the tool that is a game-changer, its the way how you master it, where do you apply it and how do you combine it with other factors in your model.

Weather you are an intra-day trader, a swing trader, a positional investor or a Hedge Fund Manager, you will always need to combine multiple layers of information to build your edge.

In the previous Article we discussed the Fundamental Layer ( Link ) and how it helps our desk in focusing on the right stocks and in this short article I would like to uncover some of the technicals we use and how MarketAlpha.ai improved our approach to the markets by speeding up the process and focusing on the Edge outlining opportunities in real time.

1. Filter Profiles and User Profiles

Incorporating this functionality in our day on day research, we can use multiple filter sets or filter profiles that highly customizable can bring the trader from point A to point B in terms of time spent at a lightspeed pace. Before integrating MarketAlpha.ai in our usual process of research we spent at least 60-90minutes a day by each trader to spot the profitable opportunities and gauge the market sentiment. At the moment using the new functionality, we do spend no more than 30minutes in technicals research, which is a reduction of 2x-3x in time spent. The easy interface and deep customization has helped us focus on the best opportunities without getting dragged into constant research. Our traders now spend quality time on execution and focus their energy to mitigate potential impact of mistakes, and psychological factors rather than constant flipping the charts seeking for a profitable trade.

2. Group Leadership

Another important functionality from MarketAlpha.ai as a research tool is the ability to research, compare and analyze market themes, industry groups and sectors that are in play at a certain period of time. This is crucial because the sector leaders like $NVDA in Semis, and $MSTR in Crypto related space are the top alpha generators for our desk this year. Group strength accounts for more than 50% of the stock move, acting like a catalyst and helping the momentum price action maintain its long term trend.

3. Automated Charting

Most of our traders do build the charts themselves but having a pre-built Technical Analysis tool with the additional metrics that can be a part of the screening parameters is a big step forward. The multi-charting function which is also automated, the possibility to adjust lots of data through the proprietary metrics and display it in a quick and comprehensive way, this is what we were looking for.

In conclusion I would like to emphasize that MarketAlpha.ai is constantly improving and the partnership with Wealth Mill is a great opportunity for both projects to strive, learning from each other, innovating and adjusting to the latest needs in trading and investing. Currently MarketAlpha.ai platform is available only to our traders as its in Beta mode with the latest platform updates coming end of 2024. We are looking forward to continue our fruitful collaboration and help Squadron Technologies release the platform to the mass market in Q1 - 2025.

I wish everyone a great start of the winter.

Sincerely,

Y.K.