Integrating wearable technology into the risk management of our financial markets.
Everyone agrees that the key determining factor of financial market risk is the human being. But there is a difference…
The finance industry has long replaced human beings with algorithms. Their premise: Humans cannot synthesize the same amount of information as algorithms in the same amount of time. And, algorithms are cheaper.
Here’s the problem. the finance industry is wrong.
With 12 years of empirical research in the field of behavioral finance we can confidently state the following, “the human body is the only mechanism capable of real-time information acquisition and processing for on-time decision-making responses”.
In other words, our bodies are wired with the best algorithms for successful trading and investing.
Is that trade you’re about to make strong or weak? Is it likely to succeed or fail?
Our bodies are actually telling us the answer. And now we’ve developed a way to listen.
The truth is very simple, financial losses are a consequence of fear, trepidation and anxiety. Similarly, financial gains are a result of clarity and optimism. The human body responds distinctly to each situation. Every trader’s body responds to price and market sentiment. Our technology monitors these responses – ‘biomarkers’ – and effectively mitigates risk and optimizes market gains.
The leading financial firms of the future are those that not only manage risk in terms of classical financial principles such as security analysis, portfolio design and asset allocation rules but also integrate the biodata of their traders to quantify the decision-making process and enhance risk management with human performance technologies.
As traders, our bodies respond – almost predictably – to the trade we’re about to make. For instance, our heart rate, temperature, skin conductivity and many other processes vary in response to those critical decisions.
NeuroEdge, a wearable piece of technology, monitors your biological processes. The biodata is streamed to our servers for analysis, then sent back to you, informing you of your body’s reactions and responses to the trade in real-time.
An equitable exchange
NeuroXchange, a patent-pending technology, is an order matching, price matching and biodata matching exchange technology that facilitates an equitable exchange of assets and liabilities based upon the biological responses of each counter party.
The point of differentiation between NeuroXchange and other global securities exchanges is that we have the capacity to mitigate market orders using the psychophysiological responses of the trader.
Enhancing market oversight
Market volatility is counter-productive to our efforts in developing a stable economy. And yet market volatility is a consequence of fear and greed. How do you legislate against man’s most primitive destructive responses? You can’t.
But what we can do, is monitor and manage through education and technological financial market reform an environment where trading and investing activities/speculation requires psychophysiological self-regulation.