The 'R' In The GROW Model – Your Reality & How Robot Investment Software Can Counter Human Bias

Machines and software are built and designed by human beings. That means that no matter how hard we try, technology can't achieve results that are not in some way influenced by human biases. But that doesn’t mean that a set of rules can’t define machine behaviour and change your Reality!

Look At Your Reality

In our Using Goals To Build To Best Robot Investment Software Possible article, we explained how we are firm believers in the GROW model. In fact, we use this method to help people and companies achieve goals when creating our strategy automation, predictive modelling, data analysis, data processing, and complex modelling software.

As we also discussed in that article, our first step in any project is to ask clients to define their Goals and decide where they’d like to end up without thinking about the how. But, once that is done, it’s also essential to look at the second letter in the GROW model, the R, which stands for Reality.

What is your Reality?

‘Reality’ in this model refers to the act of taking a step back and taking a good, hard look at where you currently are as a company and as a financial manager. That includes looking at what type of investor you are.

• A discretionary investor is someone who follows their gut feeling when it comes to buying, selling, or holding on to securities. Sure, they have the knowledge, but they are also daring and often act on split-second decisions.
• A systematic investor is someone who is far more disciplined and cautious. They check all the data before finalising their strategy and they rarely make investments that don’t have a high chance of success.

What if you could combine the two?

As you can imagine, neither of these realities is perfect: the discretionary investor can often make mistakes, while the systematic investor may miss out on great opportunities due to over caution. 

But trading idea automation software imbued with the right artificial intelligence can help combat the human bias all human beings bring to the table by creating the right balance between choosing the right investment while managing risk.

That’s because this software has the computational power that no human being can ever have. 

• It can collect data from multiple sources all day, every day;
• it can analyse the information from that data quickly and efficiently;
• it can run transaction cost analyses on your behalf; and 
• it can execute millions of actions per day.

So, no matter what your Reality is, this software can help you achieve your goals.

The best part is that software like the one we provide with our partners, TIBCO, is customised to your needs and strategy. In other words, if the analysis of your Reality is done in an objective and detached way that genuinely identifies your strengths and weaknesses, the software can then help you:

• improve your strategy;
• lower your risks;
• strengthen your execution; and
• reach your goals!

But we also need to look at Options…

So, with our Reality laid out and our Goals defined, the next step is to determine how we can achieve our desired end-result. Nevertheless, we all know that there are many pathways to achieving our Goals, with some taking longer or being more painful than others. So join us next week as we look at What Options Does Event Stream Processing Offer You?