Utilising Acuity Analysis Tools for Informed Trading Decisions

On 7 February 2024, we examined the Acuity Trading platform and its services for traders. We explored the benefits these tools can bring to investors, explained how the services can be used in trading, and addressed the pros and cons of the Acuity Trading tools.

About Acuity Trading

Acuity Trading Limited is a financial company providing up-to-date market information that can assist traders in making trading decisions. It employs artificial intelligence to analyse news messages and generate trading signals for stocks, currencies, and indices. Machine learning algorithms are developed based on historical data sets, including price charts, trading volume, news, and technical indicators.

As stated on the company’s official website, Acuity Trading Limited has access to the latest real-time news and market analysis from Dow Jones, thanks to its collaboration with Dow Jones & Company Inc. Additionally, the company is collaborating with the Polytechnic University of Catalonia to develop Natural Language Processing (NLP) technologies, which can automatically extract information from news articles, assess its impact on the markets, and generate trading ideas.

Description of Acuity Trading tools

Research Terminal

This universal AI-based platform provides access to real-time market data, news, and analysis. It is a comprehensive product for traders that may help make informed investment decisions. It is characterised by easy integration with MetaTrader 4 and MetaTrader 5 terminals.

Main advantages of the Research Terminal:

• Data integration. A single platform for the latest market data, news, and analytics
• Control panel customisation. The interface can be adjusted to fit the user’s individual needs
• Notification system. Traders can receive notifications of market changes, news, and other significant events and always stay informed of the market performance
• Support of the company’s other services. It refers to AnalysisIQ, AssetIQ, Corporate Calendar, Economic Calendar, and NewsIQ
• Employing AI. The platform converts complex data into clear ready-made trading ideas

AnalysisIQ

This tool provides traders with pre-made market signals from a team of experienced technical analysts. The service is regulated by the Financial Conduct Authority (FCA), which oversees the operations of financial companies in the UK.

Main advantages of AnalysisIQ:

• Verification of signals by experts. AnalysisIQ generates trading signals using advanced machine-learning algorithms. Professional analysts verify signals to enhance their efficiency
• Clear recommendations. Each trading recommendation includes precise target levels, confidence ratings, and the latest updates to simplify the decision-making process for investors, helping them identify and plan deals more efficiently
• Ready-made strategies. Trading ideas come with descriptions of relevant strategies to enhance transparency and comprehension by traders
• Combining several methods. Trading ideas are developed using multiple market and news analysis methods to ensure a comprehensive trading approach
• Potential Risk/Reward Ratios. Signals and recommendations focus on the potential risk and returns from each transaction. The released trading ideas have a risk/return ratio of 2:1 and in some cases 5:1

AssetIQ

This AI-based tool for online trading enables traders to obtain in-depth analysis of the chosen assets.

Main advantages of AssetIQ:

• Using the opportunity score. The indicator helps traders assess the potential of the chosen asset. The assessment is generated based on an analysis of traditional and alternative data sets
• Using the opportunity ranking. The indicator compares the potential of the chosen asset with the possibility of similar ones
• The market moving events feature. This shows the events that may impact the market, presented as interactive charts

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Corporate Calendar

This tool provides information on upcoming corporate events and, AI-based, can anticipate a possible market reaction to them.

Main advantages of Corporate Calendar:

• Detailed filter system. This helps the trader improve a stock search and selection strategy
• Integration with Dow Jones Newswires. This provides the latest corporate news and analysis to search for trading opportunities and select assets, thanks to access to extensive data from Dow Jones Newswires
• Unique forecasts. Proprietary data such as the earnings surprise index and the price range enable traders to learn about potential market movements before, during, and after corporate events

Economic Calendar

This tool supplies information about forthcoming economic events and, being AI-based, can forecast potential market reactions to them.

Main advantages of Economic Calendar:

• Detailed filter system. This provides a broad list of filters to search for highly volatile assets
• Integration with Dow Jones Newswires. This provides the latest economic news and analysis to search for trading opportunities and select assets thanks to access to extensive data from Dow Jones Newswires
• Identifying important news. This employs AI technologies to analyse extensive data sets, select the most important newsworthy events, and predict possible market fluctuations in the news

NewsIQ

This tool provides information on the latest news and analyses it using AI to search for the assets that might react to these newsworthy events.

Main advantages of NewsIQ:

• Detailed filter system. Advanced news display settings enable filtering out information noise and highlight the key events
• Integration with Dow Jones Newswires. This provides the reliable latest news information on the chosen assets thanks to access to extensive data from Dow Jones Newswires
• Employing artificial intelligence. AI technologies analyse and interpret the news

Integration of Acuity analysis tools into trading strategies

Example 1

The trader adopts a strategy involving the Heads and Shoulders pattern. On 6 February 2024, they see this model forming on the chart of the NZD/JPY currency pair. To confirm their idea, they utilise Acuity Trading tools.

Verification of trading signals for NZD/JPY through AnalysisIQ showed that the instrument gave a buy signal at 89.70 on that day, recommending setting the Take Profit at 91.00, with the Stop Loss at 89.20.

Another tool – AssetIQ – assessed market sentiments regarding the currency pair the trader is interested in as very bullish, which could suggest a potential rise in the pair’s quotes.

Based on their analysis and information obtained from AnalysisIQ and AssetIQ, the trader decided to open a long position for NZD/JPY at the price of 89.95, setting the Stop Loss at 89.20 and the Take Profit at 91.00.

On 6 February, the quotes rose, consolidating above the reversal pattern’s neckline on 7 February. The signal had not yet been completed at the time of writing, but the price was moving to the set target.

Example 2

On 6 February 2024, the AnalysisIQ tool offered a trading idea for Tesla Inc. (NASDAQ: TSLA) stock: the price chart showed a gap opened at the price of 207.83 USD, the news landscape demonstrated mixed results, and the medium-term trend remained bullish. AnalysisIQ provided an accurate signal for placing an order, with the Buy Limit at 183.43 USD, the Take Profit at 203.08 USD, and the Stop Loss at 174.43 USD.

Pros and cons of Acuity Trading tools

Pros:

• AI-based analytics. Utilising AI technologies in Acuity Trading applications provides traders with enhanced analytics beyond traditional analysis
• Wide range of assets. Acuity Trading services offer signals for stocks, currencies, and indices, catering to traders' various trading interests
• Clear trading signals. Each trading recommendation has precise target levels, simplifying the process of making investment decisions
• Expertise. An analyst team participates in the development and validation of trading ideas
• Wide range of analytical tools. Analysis of indicators, market sentiments, and news can provide a more comprehensive approach to trading

Cons:

• No guarantee of success. Acuity Trading services do not guarantee profits
• Limited transparency. The logic behind the algorithms and AI technologies is not extensively described, and sources of information are generally not disclosed, which makes it challenging to evaluate the methodology underlying trading ideas and signals thoroughly
• Potential dependency. Frequent use of automated signals may hinder traders from developing their analytical skills

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Conclusion

Acuity Trading tools employ unique algorithms powered by artificial intelligence for processing and analysing information, complemented by an expert team to validate trading ideas. Additionally, they provide access to analytical data and news from Dow Jones Newswires. Together, these features equip traders with clear recommendations and comprehensive analysis suitable for trading stocks, currencies, and indices.

While these tools can assist investors in saving time in asset selection and improving existing trading strategies, it is crucial to remember that they do not guarantee profits and entail inherent risks. Therefore, they should be used alongside other analysis methods to optimise trading effectiveness and safety, strictly adhering to risk management rules.

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