A financial robot, created by a Mexican scientist, will make the entry and exit of the capital market more efficient and timely through a low-frequency algorithm that helps to make the best investment decisions, reported on Sunday by the National Polytechnic Institute (IPN).
The financial robot, which emerges with the idea of reducing risks in finance to improve the economy of small or new investors, is represented in a financial algorithm, called Huelum Trading System, the IPN said in a statement.
"It is a system that combines and optimizes investment strategies to provide accurate signals of purchase and sale, and can be implemented in different financial instruments such as stocks, currencies, and fibers, among others," explained its creator, Ana Lorena Jiménez.
Also responsible for the Economic Research Department of the Higher School of Economics (ESE) highlighted that the main contribution of the Huelum Trading System is that it can adapt to any financial asset and capture its behavior, trend, and persistence.
"It is ideal for markets with little liquidity and depth as the Mexican, unlike the United States, which uses high-frequency robots because of the characteristics of its economy," the researcher said, through the official note.
This innovation is a code that is optimized and validated, which allows coverage positions against potential investment losses, which was based on one of the companies that make up the Consumer Price Index (CPI).
"What the system does in specific (with different tools that arise from what is known as technical analysis) is to identify how persistent is the trend or the trajectory of a financial asset, also tells you if it is down or high".
According to Jiménez, the difference between this financial tool with others that are in the market is that it is made for the Mexican Stock Exchange (BMV).
"Although it has grown, it is strong and it is consolidating more and more, it is a liquid market, that is, there are few actions that are easy to make a transaction between them since it is not the same to have a thousand shares available to buy and sell in the market, to have ten available, to give an example."
The teacher in the area of Financial and Business Economics explained that the robot proposes to incorporate several strategies that are based on the tools of technical analysis of trend detection and then make various combinations.
This algorithm combines several tools, optimizes them, and in the end, gives you the strategy that best suits the financial asset listed on the Mexican Stock Exchange.