Start AI trading with My Mate! Vol.4 "Does the number of trades affect performance?"
What is My Mate
My Mate by Invast Securities is a unique trading service that uses an AI for trading called an "AI Agent," a reinforcement learning-based trading AI.
The creation method is very simple: just answer four questions! Additionally, by having users evaluate trades, they can influence the AI Agent's thinking and nurture an original AI tailored to their preferences.
● My Mate Official Blog
The My Mate Official Blog features a variety of content from how to create AI to monthly reports and how to operate AI, etc. Please take a look!
https://blog.mai-mate.com/My Mate's Personality Is Reflected in the Number of Trades!
The AI Agents of My Mate are born with their own personalities through several questions during creation. Yet they share a common goal: to generate profit for the user. Each AI Agent learns on its own and practices what it thinks is best, but
・Aim for a big win with few trades
・Build profits steadily by making many small trades
and there are diverse approaches.
This time, we focused on “number of settlements (settlements)”. Among existing users, there may be some who say, “Our agent doesn’t trade much, which is troublesome….” Also, those starting out may encounter such situations. Please review the impact of the number of settlements and use it as a reference for nurturing future AI agents!
Trade Becomes Refined by Repetition of Settlements
First, we will introduce data on “win rate.” The graph below shows the variability of each AI Agent based on the number of settlements and win rate.
From the graph, agents with fewer settlements show some variability, but the win rate is not drastically tied to the number of settlements. However, as the number of settlements increases, win rates seem to converge around about 45%. It may reflect that the AI Agents learned to trade with understood risk.
※Win rate of AI at 365 days after birth as of April 20, 2021. The data targets AI where the following items were selected at creation (Currency pair: USD/JPY, Technical: Moving Average, News: Market Conditions, Risk Tolerance: Balanced). Source: Invast Securities Creation
On the other hand, when looking at win rate, note that “a higher win rate does not automatically mean overall profit.”
In an extreme example, even if you lose 9 times out of 10, if you earn a large profit once, you can be profitable overall. A high win rate suggests more stable trades, which is a reasonable way to view the data.
Total Profit and Loss Varies by Settlement Count?
Next, let's look at the relationship between the number of settlements and total profit and loss. The graph below shows the distribution of profits and losses for the relevant period. Like win rate, total performance does not vary drastically.
However, around the point where settlements reach about 90, there are more AI Agents with slightly better performance. Because many factors are intertwined, identifying a direct cause is difficult, but certain options chosen during AI Agent creation may cause performance to change due to the number of settlements.
※Total profit and loss of AI at 365 days after birth as of April 20, 2021. The data targets AI where the following items were selected at creation (Currency pair: USD/JPY, Technical: Moving Average, News: Market Conditions, Risk Tolerance: Balanced). Source: Invast Securities Creation
In Conclusion
This time, we validated performance with a narrowed set of options for AI Agent creation. Reiterating from the previous article, results can also vary greatly with other currency pairs or technical indicators and with customer education.
When customers cultivate their AI Agents themselves, it can be helpful to reference this article, or to educate using top-performing AI Agents from My Mate rankings.
【Important Matters Regarding My Mate Risks and Costs】
This trading involves over-the-counter foreign exchange margin trading, and principal or profits are not guaranteed. Losses may occur due to fluctuations in the traded currency’s price and interest rates.
In addition, swap points may shift from receive to pay.
If the effective ratio falls below a certain level, positions are automatically closed (loss-cut). However, because this trading can exceed the deposited margin, rapid market movements may result in losses exceeding the margin. Before trading, please fully understand the system and risks of this trading and trade at your own risk and judgment.
● Buying and selling commissions are free for both new orders and settlement orders.
● Investment advisory fees are 1 yen per 1,000 currency units (tax included) and are included in the spread.
● This trading has a spread between the sell price and buy price for currency pairs, and spreads may widen during market volatility.
● Margin trading up to 25x is possible. On the new contract date, the required margin amount (in yen) is applied based on the new contract price. From the next business day onward, the closing price of each currency pair on each business day is used as the reference price, and the corresponding required margin amount (yen) is applied on the next business day. For corporations, on the new contract date, the amount is the new contract price plus the FX risk proxy rate published by the Financial Futures Association (in yen). From the next business day onward, the closing price of each currency pair on each business day is used as the reference price, and the FX risk proxy rate published by the Financial Futures Association is applied to the yen amount on the next business day.
Please be sure to review Invast Securities’ website for My Mate risks and important notes.
Invast Securities Co., Ltd. Financial Instruments Business Operator, Kanto Finance Bureau Director (Finance) No. 26
Affiliated associations / Japan Financial Futures Association, Japan Investment Advisers Association, Japan Securities Dealers Association
Back issues of “Start AI Trading with My Mate!” serialized in the monthly FX攻略.com
