The Silicon Review
Artificial Intelligence (AI) is a fairly new entrant to trading, and experts compare it to what fire was to cavemen. AI in trading is evolving rapidly and gaining immense traction in recent times, while financial institutions are one of the early adaptors. Globally, there are various firms delivering excellent AI-based trading solutions, but Q.ai stands out from the rest. Q.ai is a new type of investment management company, a natively digital investment-management company for the 21st century. Unlike other investment companies, the experts have built Q.ai with Millennial and Gen Z investors in mind. The company’s focus is on building investment solutions that actually resonate with younger investors rather than recycling old and outdated strategies. This aligns with Q.ai’s product vision to build a platform that empowers individuals to realize their financial freedom by democratizing access to investing tools once only available to high-net-worth individuals. Q.ai is calling this new paradigm Asset Management 2.0.
Q.ai democratizes investing by bringing all of these top-performing private strategies to the public. The company calls these strategies its Investment Kits. Q.ai offers five core Signature Investment Kits: Value Vault, Power Factor, Emerging Tech, Global Trends and Active Indexer. One of the biggest benefits of Q.ai is that after selecting your Investment Kits, you don’t need to actively manage your portfolio of Kits. Each Kit is constantly working to optimize performance, reduce risks and maximize returns. Q.ai’s Kits are stacked with different combinations of ETFs, stocks, and cryptocurrencies—and then rebalanced weekly for maximum efficacy. The company also offers AI-managed Downside Protection that automatically goes to cash or hedges against the S&P 500 if its deep learning algorithms predict a market sell-off. Basically, Q.ai bridges the gap between traditional robo-advisors, and the mobile-first DIY investment apps already in the market.
In conversation with Stephen Mathai-Davis, Founder & CEO of Q.ai
Q. It’s hard to remain objective when huge amounts of capital are at stake, especially in volatile conditions. How does AI make objective decisions?
Not only can artificial intelligence help to democratize investing for retail investors who don’t traditionally have access to the same tools as the pros, but it also empowers fintech users to make more educated and informed investment decisions. Decisions that are more objective and rooted in logic rather than in emotions, which investors all too often make. The use of artificial intelligence, which in simple terms, is just advanced predictive analytics, helps investors make better probabilistic decisions. Think about it this way: Isn’t it better to make investment decisions knowing the odds are more in your favor? That is what we are bringing to the individual investors.
Q. Automated trading systems permit the user to trade multiple accounts or various strategies at one time. How does this help in asset diversification?
Spreading your investments around in various strategies helps to manage risk while capitalizing on gains. Doing so covers all bases while limiting exposure to any one type of asset, which can help to reduce the volatility of your portfolio over time. It just means not putting all your eggs in one basket. This kind of portfolio diversification is important because, when some of your holdings inevitably lose money, other investments can help to offset that decline. In fact, several studies have shown that, on average, well-diversified portfolios generate more reliable returns than non-diversified portfolios over a period of 25 years or more.
Q. Do you have any new services ready to be launched?
Q.ai continues to roll out new releases every other week. We recently launched Limited Edition Kits, which let users invest in short-term managed trades, just like high-net-worth investors. This is the first time a product like this has been made available to the individual investor. Already, we’ve rolled out Kits that follow different market events, such as holiday shopping, the microchip shortage and the new infrastructure spending bill. After all, sign-ups for these have jumped over 200% with people investing in more than one at a time in less than a week. In fact, since the launch of our Limited Edition Kits, over 75% of our user base has signed up for a combination of both our Signature Kits and Limited Edition Kits. We’ll continue to roll these out based on what is happening with the markets.
We also have a third category of investment Kits called “Select,” which includes our Meme Stock Frenzy Kit. Down the line, we plan on introducing an options trading strategy.
Similarly, we have recently offered users the ability to opt into Downside Protection, a type of strategy overlay that’s typically only offered to a select group of high-net-worth-individuals. This is the first time that this investment strategy has been productized as a product feature for individual investors. Now, Q.ai users can choose to let a group of AI algorithms determines when to turn on hedging strategies and/or go into cash. To date, over 50% of the user base has opted into Downside Protection. We’re also constantly considering user feedback to improve the app. For example, we’ll soon start allowing users to track changes in real time. In fact, we are revamping the entire experience on our dashboard, so users can get even more insights into their investment journey. This includes seeing their true ROI and real-time performance updates.
Q. What does the future hold for your company and its customers? Are exciting things on the way?
Already, Q.ai is taking on the $25+ trillion fund management industry by launching the first AI-powered investment management app. We are focused on reaching the masses and empowering individuals to get started with investing. We’ve received a lot of interest from other countries, and have an Android app on the way and plenty to build. We’re super excited to see just how far we can take this personal wealth movement!
About the leader behind the success of Q.ai in his own words
I’m the Founder and CEO of Q.ai, a Forbes company. I’m a full-stack data scientist and recognized as an expert in the application of artificial intelligence and advanced quantitative strategies to global public markets. Most recently, I was recognized as part of the Top 100 in Finance by the Top 100 Finance Magazine and have been shortlisted as one of the top CEOs of 2021 by the Silicon Review. Recently, I was recognized as one of the top 100 in tech among alumni from Johns Hopkins University. I’m also a seasoned trader, securities analyst and macro portfolio strategist with over 15 years of experience in institutional investment management.