Applying Mathematical Psychology to understand the driving forces of market behaviour
Over 15 years ago we set out to determine what drives the market in a particular direction. We hypothesized that psychology and social behaviour were the dominant forces in sending the market in whatever direction it was taking.
Our scientists applied mathematical psychology models to analyze data, directly from the order book of exchanges. They discovered that psychology and social behaviour did indeed drive the market and not necessarily empirical data alone. Additionally, our scientists found that although speed is paramount to compete, it wasn't the speed of computing that needed further improvement. It was the speed of comprehending the meaning of things and their implications in the market.
Based on this research, we developed a Market Data Intelligence platform. A real-time market perception and sentiment system based on using unique algorithms that analyze market participant activities to extract behavioural data in real-time.
Mathematical Psychology is a unique branch of Artificial Intelligence based on mathematical modelling of perceptual, cognitive and motor processes of humans as individuals and as collectives. Using this unique branch AI in our research and having applied it to our solutions, we empower our human intuitive abilities to intelligently interact with electronic markets.
The design paradigm of current investment and trading systems allows traders to compare numbers or charts. Our scientists, through their research, related to the psychological effects of linear representation of data known as the price bar charts (along with any other charts such as candlestick, line, Renko etc.) determined that in a complex and rapidly changing environment, it is more efficient to represent key data symbolically, not literally.
Price charts disregard the relative movement of the price vs. its very recent behaviour. For example, a rapid rise of the price on a 1 min bar chart might trigger a different interpretation depending on how the price behaved relative to the rate of change measured on multiple time frames. By looking at one chart, a trader becomes isolated from the vital information to what a price move means when registered at a single time.
A platform diversified in thought and methodology. Distributed for scale, QuantGate's platform applies multi-disciplinary scientific methodologies to extract perception and intent from raw real-time data.
A systematic, layered set of processes and systems combined to deliver a scalable and robust intelligence platform to power mobile, desktop, web and SaaS based solutions via a set of enterprise APIs and products.