Retail broker Capital.com has had a patent application for its machine learning technology approved in the US.
The patent, titled ‘Self-adaptive, self-trained computer engines based on machine learning and methods of use thereof,’ was approved by the United States Patent and Trademark Office on Thursday.
Called ‘eQ,’ the company says that its technology can improve traders’ capabilities by monitoring their activity for cognitive biases.
“Supposedly rational decisions may stem from mental shortcuts that ignore chunks of information, which can then have a significant impact on traders’ results,” said the broker in a statement.
Proof is in the profitability
eQ aims to reduce the negative effects that those “mental shortcuts” might have on traders by sending them notifications when they are making bad decisions.
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The technology also enables Capital.com to send it’s users personalized tips as to how they can improve their trading and a complete post-trade performance breakdown.
And according to Capital.com’s research, eQ has been effective.
Since launching in January, the broker has found that clients who read the messages pushed to them by eQ are 11 percent less likely to be margin called. Clients who read the messages are also profitable 12 percent more of the time than the traders that don’t read them.
Newcomers to the broker’s platform have also been 6.5 percent more profitable than previously. The percentage of traders with a higher win/loss ratio also increased by 10 percent.