Recently, Invast Securities issued a press release announcing that “My Mate will begin actual trading around summer 2020”.
*The start of actual trading has been postponed to the fall of 2020.
In this article, I’d like to dig a little deeper into the press release that was issued.
Choosing an AI to handle the deal
The press release says that actual trading will be available around the fall of this year, but I’ll explain how it will be available.
Customers can select an AI from the rankings and the selected AI will buy and sell on their behalf. Of course, you can also choose an AI from another trainer.
You can manage multiple AIs in your portfolio.
Here’s the portfolio screen to manage your selected AI.
Since there is a limit to the number of people who can use each AI, the most popular AIs are sold out. This is the result of considering the liquidity of assets to be traded and other factors in order to provide a stable service. In the portfolio screen, you can stop the AI and change the number of trades.
Aiming for a trading AI for real operations
From what I’ve heard, it’s very similar to Invast Securities’ selective automated trading system, Systre 24. With Systre24, the user simply chooses a trading program called Strategy, which is created by a specialist, and it trades for you. What exactly is the difference?
Because My Mate is a “leave it to us” type of trading system, and you can set up and replace your portfolio by checking the track record and assets to be traded, the management method is similar to selective automated trading like Systre24.
There are a lot of differences other than the way it operates, but there are two major differences from Systre24 in particular.
The first one is that the AI that is entrusted with automated trading is not an automated trading program, but a reinforcement learning AI.
As we have provided information on the effectiveness of reinforcement learning AI in the official guide, the results have been good so far. Think of the overall cumulative profit and loss as the profit and loss from running all 3,000+ AIs that you are training at the same time.
We have also succeeded in keeping the drawdown small, as can be seen from the profit and loss curve, which totals all of the AI results.
The drawdown is the maximum decline in cumulative profit and loss
And keeping this drawdown low is quite important in the actual operation of automated trading.
As an example, let’s say you start with $1,000,000. Let’s say that the past performance of the automated trading logic is 50% profit per year and the drawdown is up to 30%.
In this case, you should be prepared to assume that losses of up to 300,000 yen have been experienced in the past and are within your expectations. However, when a loss of, say, 200,000 yen is incurred, the traders get scared and stop trading in many cases. This is despite the fact that this automated trading logic is capable of losing 20% of its value every day and has often recovered losses quickly in the past.
This is a classic example of automated trading, but it’s a classic example of how to operate correctly because of the influence of mentalities.
Smaller drawdowns can help mitigate these mental effects.
As an aside, when the drawdown (risk) is small, the profit (return) tends to be small. In order to operate a profitable automated trading system, it is important to check the drawdown of the market and imagine whether you can really tolerate the drawdown in advance. Even in automated trading where all you have to do is select, experienced traders have the advantage of being able to make better choices than beginners.
Many of My Mate’s AIs trade in a “loss and gain” fashion, where profits are large and losses are small. Furthermore, since you can only hold one position in one AI, you can start small and start with a small capital requirement, making it easy to utilize multiple AIs. Based on multiple operations, we expect to be able to operate comfortably and without stress while spreading the overall risk.
Social Argo Trading
Next, I would like to explain the second major difference between Systre24 and us.
Secondly, the AI itself is created and trained by you.
We call this social algo trading.
Trades that copy the user’s discretionary trades are commonly referred to as social trades. My Mate does not copy the user’s discretionary trades, but rather copies the trades of the algorithms (including AI) that the user creates.
My Mate is an asset management technology platform that helps create trading AI that leverages reinforcement learning.
We will add new technical indicators, text news, and other new information that will allow the AI to evolve further, as well as tune-up the AI to improve its processing speed and decision accuracy.
The creation and training of the AI itself is based on your own ideas. 10,000 people will create 10,000 different types of trading AI. The more clients, or AI trainers, you have, the more choices you have when operating automatic trading, the more choices you will have, and the more you will be able to operate a trading AI that matches your preferences and the market.
I asked a lot of questions about the specs.
Next, we’d like to check out the specs side of things that we’re interested in. There are a lot of details that haven’t been finalized as the release is still ahead, but here’s what we can tell you at this point in time.
My Mate spreads will be delivered with a flat markup on top of a flat markup for all currencies. Specifically, we are expecting between 1 and 1.5 pips one way or the other.
We will be creating a dedicated My Mate account. If you have an Invast Securities Portal ID, you can open an additional account with a simple procedure. If you don’t have one, you will need to open a new account.
We plan to deliver a signal once a day after actual trading. In the future, we may increase the number of trades per day.
The My Mate structure can be used for asset classes other than FX. We can’t give you specific plans yet, but you can look forward to it. The effective trading style for each asset type should be different, so we’ll be developing new AI models for each asset type.
I asked about the point system.
Next, we’ll also discuss the press report’s “points program system that benefits customers who are AI-trained trainers”.
We plan to award points for activities within My Mate, such as “training a good AI”. We hope to allow customers to exchange those points for additional functional services within My Mate.
The purpose of the points program is to grant benefits to those who grow a good AI.
At My Mate, our customers create and train their own excellent AI that no one could have imagined. That’s why in the world of My Mate, the trainer is the most important thing.
I can’t tell you any more about the specific services that can be exchanged at this time because there are some procedural things that we will need to confirm in the future, but I’m assuming that we will be able to offer “transaction cost discounting rights” and “multiple AI creation”.
When we are able to tell you about it, we will cover it again in our official guide here.
Growing an AI now is a good thing!
There’s still some time before the real deal, but what if you want to get started now?
The current AI can continue to be used during actual trading.
Therefore, if you start training your AI now and maintain a high ranking at the start of actual trading, you may be able to get high points.
My Mate’s AI does not neglect continuous learning after it is created, so the earlier you train it, the more trading experience it will have. The earlier you train your AI, the more trading experience it will have.
My Mate takes AI technology, which is already commonplace in the financial world and is used primarily by institutional investors, such as fund managers, and offers it as an entirely new concept: social algo trading.
We’ll keep you posted on future updates in the official guide.
We have also posted a progress report on the conversion of the “my-mate” to an actual trading site (July 3).
Progress report on the shift to the My Mate system – most of the specs have been set!
We hope you enjoy our current service and look forward to seeing you in the future.
*Please note that the screen is subject to change during development.