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BAM Fintech: Low-Cost Multi-Asset Machine-Generated Research
For Terence Goh, who was a dealer and structurer in FX, interest rate, commodities, and equities, meeting traders to listen to their “magic formula" to make money was not something new. However, things changed for good when he met his colleague of three years, Sam Leung, and listened to his investment methodology. It was not just Leung's investment methodology involving Macro-Economic, Fundamental analysis, Technical analysis, and Quantamental analysis that got Terence excited, but it was Sam’s ability to program his investment logic into an algorithm. Though Terence has worked in the finance industry with some of the smartest and best traders, very few can trade as well as code. “Quantitative trading using pure Technical Analysis models have been around for years, often used by hedge funds using a computer algorithm. However, using a computer algorithm to perform Macro- Economic and Fundamental research is new,” he adds.
A crucial part of producing research is about analyzing macro-economic data and financial statements to come up with a target price recommendation and analysis. Research work is repetitive and time-consuming. Therefore, while research reports produced by human analysts for top blue chips and large-cap stocks are widely available, mid and small cap stocks are less covered due to manpower constraints. However, with Sam’s model, it is possible to produce Macro-Economic, Fundamental, Technical and Quantamental research not only for blue chips stocks but practically for every listed stock, index, FX, Commodity and Cryptocurrency in the world.
Led by the belief that better access to research drives smarter investments, Terence and Sam founded Binary Analytics Management (BAM) Fintech in 2017. The company aims to democratize research by providing research for every underlying investment instrument in the world to investors across the world. To this end, BAM created a Robo- Analyst named “RoboJean” to provide investors with a low-cost but high-powered investment tool to scan the world’s trading markets for investment opportunities.
RoboJean is built on technologies such as data mining, data analytics, and cloud computing coupled with its proprietary Quantamental Strategy that gives the Robo-Analyst the capability of analyzing macro-economic data to perform Macro-Economic Analysis; financial statements to perform Fundamental analysis; recognize chart patterns to perform Technical analysis; and combine all three together also known as Quantamental Analysis which recommends BUYs when instruments are undervalued and oversold and SELLs when instruments are overvalued and overbought.
Our machine can provide research reports for the world’s 72,000 listed and OTC tradeable instruments on a daily basis without any human involvement
As research sits at the apex of the whole investment value chain, this solution has many downstream B2B applications. For example, it can be deployed to complement the execution system of online brokerages, which enables clients to self-service not just on execution but on advisory. It also allows Virtual Banks to use this database to power their Virtual RM to make it capable of providing investment advice and recommendation on any tradeable instrument in the world making it smarter than any human relationship manager or dealer; it could be used in a Private Bank setting to generate ideas and storyboard to help relationship managers in a private bank sell more Dual Currency Notes and Equity-Linked Notes. “As we are an independent research provider, our recommendations are objective with a good mix of LONGs and SHORT SELLs including advice on where to set your strike and knockout levels,” says Terence. Besides providing their software directly to Financial Institutions, BAM Fintech also works with trading systems software vendors, market data providers and e-wallet operators to provide their market analytics software for integration as a value-added solution to these vendors.
The solution currently covers over 15,000 stocks and indices across 8 Exchanges in the US, China, Hong Kong, Singapore, Thailand and Canada today and could be expanded to 55 exchanges worldwide to suit each Financial Institution’s requirement. RoboJean offers customized research by markets, asset class, or by instruments based on the clients’ requirements, including white-labeling options. “Our machine can provide research reports for the world’s 72,000 listed and OTC tradeable instruments on a daily basis without any human involvement. Our research is short, concise, and most importantly, we deliver it in simple layman terms so that everyone can understand,” mentions Sam Leung, Co-Founder & CIO of BAM.
Explaining what makes RoboJean solution unique from its competitors, Sam says RoboJean can perform professional grade macro-economic, fundamental and technical analysis without the user to have any financial knowledge or input. “Our recommendations typically exhibit itself near the high or low points, or just when a trend begins to form, it tends to be more precise, accurate, and reliable,” he adds.
In an instance, a major stock exchange faced with declining retail trading interest and liquidity, especially among its mid and small-cap stocks is exploring machine-generated research to supplement human analyst research in its stock market. BAM proposed to create localized RoboJean software that can cover ALL the listed stocks in that particular market on a daily basis. By offering the software for $1 and $2 per month, it seeks to encourage more investors to access the research and thereby trade more in its local bourse.
In the future also, BAM will continue to improve the user experiences. “We are refining our model to work on bonds and cryptocurrencies and deliver the same high-quality research recommendations to our users,” concludes Leung.