From everyday investors and day traders to major financial institutions, artificial intelligence (AI) is a buzzword being touted by many as a tool for speeding up financial market research and analyzing vast data sets. It is easy to see, at a high level, that the promise of AI lies in its ability to uncover market patterns and trends, equipping you with the insights to help make better decisions.
But are all AI tools created equally? The answer: A resounding no.
As the CFA Institute highlights, some AI systems can carry biases inherited from incomplete training data or untested model design. This bias potentially skews the information and analysis investors and traders factor into their research. Additionally, the focus, purpose, and intent of new AI and machine learning (ML) models in the market are not all the same. So it stands to reason that the output of these models will not all be the same.
Building AI systems that generally and broadly take in data is not the same as a purpose-built AI system trained on historical data with a specific focus and design for an unbiased learning. As artificial intelligence and machine learning become an evermore tool in the tool chest of financial market research firms, investors and traders must find the right tools to enable and enhance their own research.
The Socrates Platform distinguishes itself by providing proprietary AI and ML models that originated decades ago and have been enhanced through the years to deliver unbiased, data-driven financial market insights on a global scale. These models weren't created as chatbots, or search engines with bias or political or cultural sensitivity. They were developed to look at global financial market history and gain insights. Period.
Key Takeaways
- Each day, the Socrates Platform analyzes millions of data points from over a thousand financial instruments around the world to generate unique technical indicators and content for users to research.
- Socrates’ proprietary computer models and machine learning algorithms are a product of 30+ years of research and development based on the principles of physics, cycles and technical analysis — what was originally built for financial professionals is now accessible by anyone.
- Socrates isn’t a ‘jack of all trades’ platform. It is highly specialized, focusing specifically on unbiased computer-analysis of global financial market behavior over the course of history to help identify cyclical timing and technical price considerations to research.
- Socrates also utilizes natural language processing to produce computer-generated market analysis text to supplement the various indicators and data points available for research.
- Socrates includes over a thousand global financial instruments (Covered Markets) to research, including stocks, stock indices, exchange traded funds (ETFs), bonds, commodities, foreign exchange / currencies and key economic data points.
- The Socrates Platform is not a brokerage or trading platform. It is not a bank. The Socrates models do not make individual investing recommendations. The sole focus is to offer users a different perspective and additional insights that can help empower your own research.
How Socrates’ Purpose-Built Models Generate Unbiased Analysis
The original intent for the Socrates Platform was to offer a unique software-as-a-service tool that anyone can use to research global financial markets from an objective, long-term perspective. The Socrates proprietary computer models employ cyclical and technical analysis methodologies to help identify the cycles, patterns and trends driving global financial markets.
For example, when analyzing stock markets, the Socrates Platform models use historical stock price data to detect momentum, recognize behavior and identify price levels where pressure may exist. They systematically analyze the data for price movement and cyclical activity over the course of years — if not decades — without subjective interpretation. They don't start with a predisposition or bias. They aren't learning on fundamentals or third-party analysis. The models are just taking in the data and analyzing it, at scale.
The output is a series of unique computer-generated indicators and text to help users identify potential time and price factors to consider for markets they are interested in researching. This could lead to potential changes in market momentum, direction, or even a change to the long-term trend.
Unlike tools and services that rely on traditional analysts’ perspectives or short-term fundamental analysis, the Socrates Platform scale of coverage and insight is virtually impossible to achieve manually. By removing subjective influence and short-term noise, the Socrates Platform offers users a consistent, objective view of global financial market behavior deeply rooted in historical data.
Turning Data into Actionable Market Signals
The Socrates Platform extracts patterns, trends, and cycles from raw market data and translates them into insights users can easily understand. Charting tools with unique studies and color coded data tables, for instance, take complex modeling behind the scenes and transform it into an easy-to-navigate experience that is easier and more intuitive to research.
Looking at specific models, the Global Market Watch is a pattern recognition model that uses simple color-coding and computer-generated comments to help translate what it is observing in price activity. For stock markets, this might mean highlighting patterns in a particular sector or industry, helping users key in on areas they want to further research in order to anticipate potential shifts ahead.
Similarly, Timing Arrays, available to Socrates Pro and Enterprise members, use color coding and a bar chart to help users identify cyclical timing considerations and conditions for potential turning points that may be ahead.
Alongside visual tools, the Socrates Platform leverages natural language processing to generate text-based interpretations of market data, offering insights derived from its proprietary computer models.
For example, the Analysis Text feature may offer summaries of trends, technical price levels, timing cycles, and reversal points for a specific covered market. This text acts as a reference guide, explaining what the platform’s models are “seeing” in the data — which can be a helpful supplement for users when researching the charts and data itself.
Leveraging AI for Faster, More Accurate Financial Market Research
Critically evaluate the role AI and machine learning algorithms play when researching global financial markets. Download our guide to discover the risks of using unproven tools and the incredible benefits unlocked with the right AI-powered platforms.
What Sets Socrates Apart
The Socrates Platform is highly specialized and focuses solely on analyzing global financial markets with multiple years (or decades) of history. With 1,000+ Covered Markets (financial instruments), Socrates offers insights into stocks, ETF's, commodities, bonds, forex and key global economic indicators. Socrates doesn't get caught up in IPO hype - the platform only tracks markets that have years' worth of historical data, so the models have enough information to begin to detect the patterns, trends and cycles. The more history, the better. By focusing on substantial historical depth, this allows the models to be more resilient against short-term ‘noise,’ delivering users with well-founded information and insights.
We’re also far from being the new kids on the block. With over 30 years of rigorous research and development, Socrates’ AI-driven computer models and machine learning algorithms have been proven over time to produce to unbiased, data-driven market insights.
Can the Socrates Platform Replace Your Decision-Making?
With all the buzz surrounding artificial intelligence there will be many tools out there that make bold claims, but it's important to keep in mind that not all AI is created equal. And even the most powerful AI-based tools are not a substitute for human judgment or consideration of each person's situation.
The Socrates Platform is not offering financial advice nor is it a financial service. Socrates is a research tool, period. This is important to understand.
While the Socrates Platform provides data and insights for you to research, it does not provide tailored or personalized advice. It does not factor in, nor does it understand, anyone’s personal situation. Output from the Socrates Platform is for informational and educational purposes only.
Investments and trading financial markets involve risk. It is always recommended that users use multiple tools and sources for their research, and to work with qualified financial professionals to consider their own financial situation and risk tollerance before making any financial decisions, trades, or investments.
No financial research tool or AI system will be perfect. Not Socrates. Not any other system. Financial markets can be very unpredictable, and no matter how much you research the fact remains that every financial investment or trade includes the risk of financial loss.
Ready to See How Socrates Can Enhance Your Market Analysis?
Explore how the Socrates Platform can support your financial research and decision-making process. With membership options designed to provide the level of access and depth you need, you’ll have powerful tools at your fingertips.
