Beware of AI or the so called artificial intelligence trading software solutions. While such claims are based in certain amount of criteria, not so well trained investors can fail to win or can fall on a big trap.
In the example below, MULN is a stock that Yesterday showed some move but failed to reach the $2.00 mark, then went down today, back to less than a $1.00. Lets see what happens on out chart above. We can notice on out indicators, that since the stock was around $11.33, it was a short. So, a big, huge and large run to the down side.
Why the AI or artificial intelligence solutions gave this instrument on its scans? It was because the move. Now, a lot of investors were looking at fancy bells and whistles and at lower time frames, but while looking at the daily chart, we could see the real move. Also, it was happening for a long time, not the move of a day or two.
It was also necessary the implementation of good custom made technical indicators, an even with that, you can see a lower custom made indicator with certain criteria, to make sure the most important stuff was taken into account. The white arrows shows the ticker symbol and the two days the so called AI software gave regarding the instrument.
There is a big difference when it comes to spend money in expensive and useless software, while some brokers have good solutions, easy to code and adapt to any market conditions, such in the case of the platform ThinkOrSwim.
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