September 26, 2018
On September 25 we had the honor of hosting Mr. Ken Medanic,
the CEO of NeuroTrader, who gave a guest lecture on the topic "Paradigm-shifting
the financial markets using biodata and machine learning” to our Web and Mobile
Computing students. The lecture was held at our Dubrovnik campus and the Web
and Mobile Computing students from our Zagreb campus were connected via Polycom
system.
Most seasoned traders and portfolio managers are familiar
with the mental biases, behavioral tendencies and emotional responses that
affect daily trading and investment decisions. This dynamic interplay sculpts
and forms our decision-making style overtime by developing within us patterns
of behavior which may or may not be useful in an ever-changing and volatile
market. Despite the advent of algorithmic and high-frequency trading, human
design and intervention is at the very basis of these systems and therefore
they too incorporate our perceptual biases and decision limitations. Given
this, how do we create automated decision-making models that correlate to
market fluctuations, are tailored to the each individual trader and facilitate
decision-making responses commensurate with an optimal biological state,
thereby mitigating sub-optimal decision responses and improving financial rates
of return?
NeuroTrader is a software and hardware solution that
integrates the biological responses of the trader with price and market
sentiment. Integrating the psychophysiological state of the trader into a
trading platform enables us the opportunity of recognizing optimal and
sub-optimal biological decision-making states with which we can create unique
individual trader performance profiles and automate buy and sell orders as a
function of risk management.
The commonly held belief is that the financial markets are
random and as such cannot be interpreted in a timely manner to produce
consistent positive rates of return. Those individuals that do produce
consistent returns above those of the benchmark indices are considered
anomalies.
The truth is that our decisions create our reality and our
decisions are a biological response to stimuli. Utilizing Newton’s three laws
of motion and applying them to the biological responses of traders we can gauge
a clearer understanding of the dynamic cause and effect relationship between
the financial markets and the human body thereby giving us the unique
opportunity to map the responses and replicate them to mitigate losses and
optimize gain.
About Ken Medanic:
Ken Medanić has been trading the financial markets since
1998 whilst at university majoring in finance and financial law. At that time
he developed a software program that managed a portfolio of futures contracts,
producing an annualized return of 88.7%. In 2008, after years of research, he
discovered how his biological responses correlated with his trading
performance. In 2009, he commenced a privately funded research initiative
integrating his research with the technologies established by Dr. Demichelis of
AC Milan, developing the most advanced biodata-based trading system in the
world.
Early this year, he launched NeuroTrader the first trading
solution, that integrates the traders bio-data using wearable technology to
improve their performance by training them to perform at a professional level
commensurate with trading success.