Developer Spotlight #8: Formula Stocks

Our mission at Intrinio is to power a generation of applications that will fundamentally change the way our broken financial system works. Intrinio data feeds form the basis of large enterprise business reporting applications, fintech web-apps, mobile apps and even blogs. It's rewarding to see our product come to life at the hands of today's most innovative developers. They are building powerful things.

We're lucky to be in a business where we grow together with our customers, and we're proud to show off their hard work. Each blog in this series will feature a developer or a startup that has leveraged our financial data feeds to build something incredible.

These are their stories.

 Formulastocks

Let's talk about your retirement fund, shall we?

Investing passively in the stock market will earn you ~6% in the long run.

Under that logic, your retirement money is safe and set to soar.

But...inflation as measured in terms of the price of gold has averaged 6.3% since 1941.

This means that passively investing keeps purchasing power intact rather than adding to it.

Wouldn't you rather take an active investing stance and not fall victim to inflation?

Now, if someone told you they knew which stocks would go up, before then went up, would you believe them?

If they told you that 90% of the time they was correct in the long run, would you take their investment advice?

One Warren Buffett fan spent the past 14 years making that scenario a reality, and he did it by developing an artificial intelligence investor that can compete at a very high level.

Taking Things Into His Own Hands

Thomas Lyck, the brains behind the FormulaStocks technology, started learning software development at age 13. He took these skills to the movie industry where he became a pioneer in its transition from analogue to digital production.

His specialty was computer graphics, which lead to the development of theLegos building instructions system that produced all of LEGO's building instructions for their products, globally, for over a decade. 

 

So how does one jump from computer graphics and global lego instructions systems to artificial intelligence investing? 14 years ago Thomas, a devoted personal investor in Berkshire Hathaway, made a realization.

"It was obvious to me that I could not count on Warren Buffett to invest for me for the rest of my life."

Thomas grew up in a family of financial pros, so he had been personally investing in the stock market for some time - but he went on to gain a strong background in HPC (high performance computing).

This combination, which we see in some of the most successful fintech entrepreneurs, led Thomas to brainstorm a better way to invest. And, like some of the best fintech apps in the market, it started as a personal project and has grown to something much more momentous.

Welcome to FormulaStocks

Enter FormulaStocks. This platform provides you with weekly stock recommendations, helping you to better your investment performance with higher expected reward and lower expected risk.

FormulaStocks Unleveraged Returns

Unleveraged returns since 2009, compared to the Dow Jones Industrial Average.

  1. Weekly Stock Recommendations
  2. What to buy?
  3. At what price?
  4. How much?
  5. Then, when to sell?

Access all of this intelligence and more, for just $50/month. You can even get your first month of access for free  so you can see for yourself how powerful this technology can be.

Invest Intelligently

The FormulaStocks technology includes dozens of techniques that identify rising stocks with 89-92% probability:

  • Cognitive Computing
  • Business Analytics
  • Margin of Safety Principles
  • Valuation Technology
  • The Scientific Method
  • Quantitative Measurements
  • Growth Projection
  • Intelligent Investment Technologies
  • Alpha Prediction
  • Position-Sizing Logic
  • Portfolio Management Technology
  • Statistics
Suggestions Page on FormulaStocks

Suggestions show up on the main page, including charts and top stocks.

You can use these suggestions to create your own strategy, but the FormulaStocks team also generates a model portfolio that is very easy to follow.

Portfolio Page on FormulaStocks

Portfolio Page on FormulaStocks

Meet the Team

Thomas Lyck, CEO

  • FormulaStocks Logo8-time serial entrepreneur
  • Pioneered computer graphics for the movie industry
  • Specialist in parallel supercomputing, complex data, & artificial intelligence,

Mark Lyck, COO

  • Entrepreneur passionate about making complex technology accessible
  • Background in business administration
  • Web-based user interface design guru

Marie Lauritzen, PhD., CHRO

  • PhD., graduate of Royal Holloway, London, and Aarhus University, Aarhus
  • Focus in research, complexity theory and originally post-modern literature
  • Assists with research and quality control oversight

Challenges

Like all great things, the technology behind FormulaStocks did not evolve overnight. Teaching a machine to think like an expert investor involves JUST A FEW technical challenges!

The most challenging aspect of launching FormulaStocks was dealing with the stigma around trusting a machine with your money. Thomas knows that his technology could make better-informed investment decisions than a seasoned and trained professional, but the words "artificial intelligence" and "machine learning" can make people squirm. Luckily, the results speak for themselves.

"Our pilot program netted a ROCE of +78,94%, +44,64% and 17,51% over a three year period as a proof of concept."

Another challenge in getting any fintech technology off the ground is finding the right high quality data that is actually affordable. Thomas and his team knew that real time stock price data would make their platform even more accurate.

As most of us know, this type of data can run in the hundreds of thousands of dollars, rendering it inaccessible for entrepreneurs. Thankfully, the team came across the Intrinio Fintech Marketplace and were able to get going immediately.

"Intrinio was very helpful with the setup process and provided great documentation, making the server integration a breeze."

Get in Touch With The Team

Stay tuned, because this team is still hard at work. In addition to the current retail platform, a professional version will be released for institutional capital and accredited investors.

Thomas is on a mission to make automated AI investing a serious participant in the overall investment landscape. You may want to keep your eyes on FormulaStocks.

The best way to get in touch with the FormulaStocks team is to use their online live chat support via the FormulaStocks website, but don't be shy and shoot them an email too!

Email: info@formulastocks.com

FormulaStocks Website

  • James

    This one actually sounds really interesting, I’m gonna give them a try!

  • They have a really clear, compelling proposition. Rise of the algos!