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Industrial Technology Research Institute

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Intelligence Robo Advisor

Technology Overview

The Architecture of Intelligence Robo Advisor.
The Architecture of Intelligence Robo Advisor.

The techniques of deep learning and financial engineering are integrated for predicting the future market direction and volatilities. Moreover, we use the deep reinforcement learning algorithms which take the market prediction results as inputs to make the investment decisions for investing a single mutual fund in the way of variant dollar-cost averaging.

Applications & Benefits

The techniques of deep learning and financial engineering are integrated for predicting the future market direction and volatilities of the 50 stock and bond market. Transaction data and economic indicators are used for training these models. Moreover, an ensemble learning algorithm is developed for finding the potential funds in a specific market. With these analytic results, the robo can select the potential markets and obtain the potential funds from these specific markets. Then, it generates an asset allocation with the minimum volatility under a given expected return according to the Markowitz modern portfolio theory, and dynamically reallocates the portfolio while the robo views change. Moreover, we use the deep reinforcement learning algorithms which take the market prediction results as inputs to make the investment decisions for investing a single mutual fund in the way of variant dollar-cost averaging.

Robo advisor can be applied to the digital finance service, providing financial enterprises the analysis of the market direction and investment targets.