Swarm Intelligence is one of the newest binary options auto-traders on the market, and unlike most of its peers, this product is indeed legitimate. It could actually serve as a base of comparison for all the other such products promoted out there. The SwarmIntelligence promotional video – pushed by the creators of the software – is indeed what the marketing effort of a legitimate product should look like. Unlike all the scams, this one is focused almost exclusively on the technology that powers the trader. The promises it makes are very plausible and reasonable too.
Everyone who’s ever had the misfortune of running into one of the auto trading scams, knows how the promotional videos of such products focus on showcasing various images of wealth and luxury. Tens of minutes go into the listing of all the things one could buy with the hypothetical profits accrued through the promoted product. Yachts are shown, fancy cars are driven by the actors hired to push the trader, and some even go as far as to stick fake logos on a corporate jet rented for filming purposes. None of that happens in the Swarm Intelligence video though, and that’s great: we don’t need that nonsense. What we do need is to gain at least a general understanding of what makes the system tick, and why we should believe that it’s capable of winning any trades at all. The Swarm Intelligence presentation provides all that and more.
The Swarm Technology
The Swarm auto-trader is based on Swarm Intelligence, a concept long-known and experimented with in cutting-edge science. It is one of the cornerstones of artificial intelligence development. What exactly is SI though? It is the collective behavior of swarms of decentralized agents. The individual agents are unaware of this global intelligent behavior. They merely interact with some of their peers and their environment, based on a set of simple rules. The “intelligence” is manifested on a global level, despite the lack of all centralized control. The easiest way to understand what SI looks like in action, is to take a look at nature, where swarms of birds and insects as well as schools of fish offer some visually pleasing examples in this respect.
SI can be natural and artificial too. The applications of SI-based artificial systems are numerous. The US military has been experimenting with such systems for self-driving vehicles, while NASA has been performing research involving planetary mapping. You can read more about the applications of Swarm intelligence on Wikipedia.
In the trading context, Swarm prediction is what we’re mostly interested in. This application of SI is one aimed at the forecasting of problems. The approach to Swam Intelligence adopted by the Swarm Intelligence software is a little different from the above described models. In their system, there actually is a central authority making heads and tails of the signals generated by the swarm. Also, their agents aren’t simplistic organisms or systems either. They are in fact rather intricate trading programs, possibly capable of generating valuable trading signals on their own. The model that the Swarm system attempts to copy is that of human swarming.
Yes, human can swarm in a sense as well. Experiments in this regard cited by Swarm Intelligence’s CEO include horse racing and Academy Award predictions, done by study groups. In all these cases, it has been found that the predictions posted by the groups were much more accurate than those of individuals – regardless of their level of expertise.
What happens in such group settings is that individuals complete and fill in gaps in each-others’ knowledge. This way, a sort of super-intelligence is born. The swarm consists of the sum of the skills and knowledge of those taking part in it. As long as it manages to tell weaknesses apart from strengths and eliminate them from equation, it will naturally become much better at what it’s trying to accomplish.
This is how the Swarm Intelligence system works. Thomas Porter, the programmer who made it all happen, explains that the system uses no fewer than 10 different auto-traders, each of them working a completely different system. Every one of the auto-traders covers the three pillars of proper market analysis. The mechanics, the technical analysis part as well as the fundamentals. Mechanical trading is based on analysis of historic data, and its use to draw conclusions for possible future movements in the price of the targeted asset. While it alone isn’t highly reliable, its results are always corroborated by trading signals resulting from technical analysis. Technical analysis works with charts, chart-patterns and various mathematical models. Proper technical analysis uses a selection of indicators, which generate trading signals. These signals have to point to the same conclusion for them to be deemed strong enough.
Last, but not least, we have the analysis of the fundamentals, which is perhaps the most difficult aspect to cover from the perspective of an automated trader. The fundamentals are about real life events and their impact on the evolution of a given asset-price. These events can be political or economic in nature. Virtually everything makes this category though, as even weather events have potentially major impacts on the markets.
As said above, every one of the trading systems used by the Swarm covers all the above said aspects of analysis. There are no fewer than 10 such systems working though, and they all use different means to arrive to their own conclusions. The Swarm Trading App only acts on a trade when the overwhelming majority of the signals generated by the 10 robots coincide. This approach makes certain that the signals used for actual trading are exceptionally strong indeed. There’s quite a bit of analysis and number-crunching required to push a signal through the system, but that’s what computers are really good for.
Swarm Intelligence’s Claims
The people behind the Swarm Intelligence software admit that it is not the kind of trader that will generate several trading signals every minute, and that it therefore might not be a good fit for action-junkies. It puts quality above quantity, and the signals on which it acts are truly outstanding indeed. Even so, the success rates on trades do not exceed the 83% mark. This claim is a very reasonable one, as shown by a number of other legitimate and working auto-traders that we have put to the test. When it comes to projected revenues, the Swarm Intelligence people are extremely cautious. There are a number of settings traders can tinker with in the Swarm App, and depending on how they manage their capital and how they throw their funds around, traders can make as much as $1,000 in profits per week.
What kind of control do traders have over the way SwarmIntelligence acts? On one hand, they have a money-management tool: they can set the amount of investment per trade, from $25 to $500. A more conservative approach leads to smaller and more manageable variance, but smaller long-term profits. As one’s balance grows, it’ll become feasible from a capital-management perspective to make larger investments though.
The other tool concerns the strength of the trading signal one wants the auto-trader to act on. The default setting in this respect is 9, which means that 9 of the above described 10 robots need to concur on a signal in order for it to be actually used. Traders are free to turn down signal strength to 8 or even 7, but they have to keep in mind that this way, they’ll be taking away from the power of the swarm. On the other hand, more trading signals will be let through the filter and more trades shall be placed. On the default setting of 9, 7-12 trades are taken by the system per day.
Of course, one can also turn signal strength up to 10, in which case fewer signals are traded, but those that are, carry a higher likelihood of success. This setting is the equivalent of the conservative trading approach. The most cautious way to use the Swarm is to set the trade amount to $25 and the signal strength to 10.
In such situations, money management is of the essence. While sticking to a conservative approach all the time might make sense for some, those who really aim for performance, will want to keep in-line with the size of their balance. To this end, the creators of SwarmIntelligence have put together a money-management scheme, which allows traders to maximize their profits, while keeping the risks they’re taking at a minimum.
The SI System is in an incipient phase right now. It has been launched in early 2016, and while some testing has already been done, more of the same is needed for its creators to expand the operation. As said above, the current ITM rates are at around the 83% mark. You will need that much indeed if you intend to beat the binary option equation in the long-run. One does have to bear in mind however, that in order to reach the 83% mark, some variance, and lower ITM rates need to be overcome. This is where the SwarmIntelligence investment calculator can come in handy.
SwarmIntelligence Review Conclusion
The Swarm Intelligence App presents itself as a solid and well put-together operation. Though it is a small player on the binary options auto trading scene for the time being, its fundamentals are sound. Its technology is solid, and it actually adopts the same sort of approach some build-it-yourself auto-traders do, tossing in the extra of mechanical and fundamental analysis. By the looks of things, SwarmIntelligence does indeed deliver. The system gives traders a selection of brokers to pick from, giving them a certain amount of more than welcome control in this respect as well. The bottom line is, Swarm has all it takes to join the likes of among the legitimate auto-traders that do indeed deliver on what they promise.
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