MarketRaker AI Develops Stop-Loss Recommendation Algorithm
Our in-house research team has developed a stop-loss recommendation algorithm designed to help investors and traders optimize their risk strategies across various financial markets.
The MarketRaker Stop-Loss Optimizer (MRSLO) is the result of months of intensive research and development by our talented data scientists and machine learning experts. This proprietary algorithm harnesses the power of deep reinforcement learning to predict optimal stop-loss levels for long positions in stocks and cryptocurrencies.
The MRSLO is powered by a sophisticated double deep Q network (DDQN) reinforcement learning agent, which utilizes a state-of-the-art temporal convolutional network (TCN) architecture. This innovative approach enables the algorithm to analyze 12-hour price data over a lookback window of 48 time steps, identifying complex patterns and trends.
To ensure the robustness and reliability of the MRSLO, our team conducted extensive simulations using real-world historical data. The algorithm was rigorously trained through 5000 simulated trading games, with price data randomly sampled from a diverse set of top NASDAQ stocks and major cryptocurrency pairs. The MRSLO’s performance was then validated on 10,000 out-of-sample test games.
The results of our testing are highly encouraging. Across all assets, the MRSLO achieved an impressive average gain of 1.15%. The algorithm demonstrated its adaptability by securing a 1.32% average gain in the stock market and a 0.64% average gain in the highly volatile cryptocurrency market.
Through in-depth analysis of the MRSLO’s decision-making process, our researchers uncovered valuable insights into optimal stop-loss strategies. The findings suggest a dynamic approach, with the algorithm initially setting wider stop-loss levels (12–20%) and gradually tightening them as prices decline. The MRSLO exhibited a preference for 13–15% stops in stocks and 17–19% in cryptocurrencies.
While these results represent a significant advancement in algorithmic risk management, the MarketRaker AI team remains committed to continuous improvement and innovation. Our ongoing research and development efforts include:
- Expanding datasets and increasing data granularity to 1-hour rolling windows
- Adapting the MRSLO for short trading positions
- Incorporating additional technical analysis features
- Enabling continuous stop-loss selection for more precise risk management
- Conducting further research into model optimization and training methodologies
At MarketRaker AI, we are dedicated to pushing the boundaries of what is possible in quantitative finance. By harnessing the power of artificial intelligence and deep reinforcement learning, we aim to provide investors and traders with the most advanced tools for navigating the complexities of modern financial markets.
As we continue to refine and enhance the MRSLO, we remain committed to transparency and knowledge sharing. Our team plans to publish our findings in leading academic journals and present at prominent industry conferences.
How to use it?
1 . Go into our Discord channel and register for your account. You can go into our #prediction channel and use the on demand feature by running the command
/stoploss BTC/USD
this will return with the stoploss for the given pair.
2. Visit the website and you will notice stop losses on the trading pairs you have selected.
With the development of the MarketRaker Stop-Loss Optimizer, we are excited to empower our clients with risk management capabilities. At MarketRaker AI, we are proud to be applying deep reinforcement learning to real-world financial challenges, and we look forward to delivering even more innovative solutions in the future.
