Robo-advisors or Robo-advisers are a class of financial adviser that provide financial advice or portfolio management online with moderate to minimal human intervention. -Wikipedia
Robo-advisor (A.K.A. Intelligent Investment) can provide automated investment management services, which requires little or low human interactions once the clients ensure their initial preferences.
Here is a PowerPoint about the introduction of Robo Advisor:
RTQ is a questionnaire about customers’ personal financial goals and tolerance for risk.
Robo provides asset allocation and investment selection.
Automatic deposits from payroll, systematic investment plans, and automatic rebalancing
The robo-advisor software will make periodic adjustments over time.
- Input: User Info;
- Output: Portfolio;
- Mean-Variance Optimization
- Use tensor to describe the portfolio space;
- Find topological invariant and predict;
- Deferential Manifold;
Random effect function
— Passive management: mainly index fund or ETF (Exchange-Trade Funds)
— Stocks, bonds, mutual funds, futures, and real estate may be used
- Personal Capital
- Rebalance IRA
- Schwab Intelligent Portfolios
- Ally:TradeKing Advisor
- Motif Investing
- TD Ameritrade
- Merill Edge
- Fiedelity GO
- Alpha Architect Robo
- Cambria Digital Advisor
Independent Robo-Advisors (Domestic)1
- Ant Group: iGoldenBeta
- Optimal investment strategy to non-professional investors
- Low commission fee
No too much AI&Big Data yet in the industry (Speech Recognition, Big Data)
- Moody, J., Wu, L., Liao, Y., & Saffell, M. (1998). Performance functions and reinforcement learning for trading systems and portfolios. Journal of Forecasting, 17(56), 441-470.
- Neuneier, R., & Mihatsch, O. (1999). Risk sensitive reinforcement learning. In Advances in Neural Information Processing Systems (pp. 1031-1037).
- Dempster, M. A., & Jones, C. M. (2001). A real-time adaptive trading system using genetic programming. Quantitative Finance, 1(4), 397-413.
- Li, B., & Hoi, S. C. (2014). Online portfolio selection: A survey. ACM Computing Surveys (CSUR), 46(3), 35.
- Galindo, J., & Tamayo, P. (2000). Credit risk assessment using statistical and machine learning: basic methodology and risk modeling applications. Computational Economics, 15(1), 107-143.
- Dempster, M. A., & Leemans, V. (2006). An automated FX trading system using adaptive reinforcement learning. Expert Systems with Applications, 30(3), 543-552.
- Nevmyvaka, Y., Feng, Y., & Kearns, M. (2006, June). Reinforcement learning for optimized trade execution. In Proceedings of the 23rd international conference on Machine learning (pp. 673-680). ACM.
- Jiang, Z., & Liang, J. (2016). Cryptocurrency Portfolio Management with Deep Reinforcement Learning. arXiv preprint arXiv:1612.01277.
- Moody, J. E., Saffell, M., Liao, Y., & Wu, L. (1998, August). Reinforcement Learning for Trading Systems and Portfolios. In KDD (pp. 279-283).
- ACCENTURE: The Rise of Robo-Advice: Changing the Concept of Wealth Management
- CGI: [Beyond Robo-Advisors:Using Technology to Power New Methods of Client Advice and Interaction]
- Deloitte: Robo-Advisory in Wealth Management
- IPSOS: Robo-advisors: the rise of automated financial advice
- McKinsey & Company: ARTIFICIAL INTELLIGENCE THE NEXT DIGITAL FRONTIER?
- Wealthfront Investment: Methodology White Paper
- Betterment - White Paper: Tax Loss Harvesting+™
- Schwab - Rebalancing and Tax-Loss Harvesting in Schwab Intelligent Portfolios™
- CNBC: Goldman building robo-adviser to give investment advice to the masses
- CNBC: Machine learning is transforming investment strategies for asset managers
- American Banker: Beyond Robo-Advisers: How AI Could Rewire Wealth Management
- The Economist: Ask the algorithm
- Quora: Is there any hedge fund using Machine learning based algorithms for trading?
- Quora: Can deep reinforcement learning be used to make automated trading better?
- INSIGHT: Machine Learning in Finance: Is a Robo-Advisor Smart Enough to Invest Your Savings?
- NerdWallet: Best Robo-Advisors: 2017 Top Picks
- INVESTOPEDIA: 9 Top Robo-Advisors for Financial Advisors
- StackExchange:Which algorithms do robo-advisors use?
- Mr Money Mustache Blog: The Betterment Experiment – Results
- NerdWallet: Best Online Brokers for Stock Trading 2017
- The Balance: A Look at the Top Robo-Advisor Services
- Artificial Intelligence led disruption in Trading
- How Machine Learning Is Helping Morgan Stanley Better Understand Client Needs
- Survey of Robo-Advisor Market and its impact
- Portfolio Management view of Robo-Advisor
- In-depth exploration of Robo-Advisor framework
- Trend analysis of Robot-Advisor
- Survey: How do human trust Robo-Advisor?