Creating a Stock Market AI Algorithm!

Shivalay Kara
4 min readOct 11, 2020

Aim: Repetitive testing and analysis of my developed AI algorithm in multiple stock markets through 24/7 servers.

Hello everyone,

A few years ago, I was introduced and hooked into the world of finance, particularly the foreign exchange market. I had no previous experience regarding the world of commerce, except having been told by most people that only businesses trade successfully within the market. So I gave it a go and along the way, I proved that you don’t need a huge financial degree to invest, just some of your student allowance and a lot of determination.

My university life is based around biomedical research, where I was taught to make theories based on already well-established facts, so in summary, I was following the footsteps of the many scientists and their predecessors. So you could imagine when I first looked into the stock market, it was an entirely new environment to me, everything is about predictions and analysis of what is happening in the current world. Over time, with a lot of studying through Youtube (an amazing source), online courses, and a few seminars, I eventually gathered a lot of theoretical knowledge about the market, enough so that I could make well-informed decisions about moving price action.

After reaching a certain level, I did what most people do and started convincing my friends to learn about the stock market, and anyone who’s been in my position will know that no matter how much theoretical knowledge you teach someone, most people will still tremor from pressing the “execute trade” button. The saying, “put your money where your mouth is”, has never been more clearly shown to me than seeing people not take a winning trade due to their doubt and fear. Many of us have come across an advert telling us to invest, but then after the email verification stage and maybe one quick read, you just give up, realising the amount of effort and time it will take to make it to the “financial freedom” stage. I get it, anyone who has clicked on that advert has done so because they care about their future, but unfortunately, trading isn’t easy, there’s a lot of complicated aspects to it. However, despite all the uncertainties in the stock market, most people give up due to the attached emotional rollercoaster rather than the perseverance required.

The Big Idea

So I thought to myself, how could you take away the fear and doubt so that people can still approach the stock market with open arms instead of confusion and chaos? The solution was using artificial intelligence (AI) trading. Yup, it’s exactly what it says on the tin, some algorithms can trade for you, a decade ago, this would have simply been a proposed idea, and now it’s gradually becoming a new approach towards trading. Most people would ask, “how can you blindly trust a robotic software with your money?” But an algorithm will make a rational decision based on the numbers rather than emotions.

After a while, I found an AI-assisted trading strategy that although adopted a high risk, high rewards method, with the correct setting, it could capture the market. I have tested this strategy and I do not doubt the algorithm’s capability to execute good trades, but the problem I am facing is how do you rationalise unpredictable moments in the stock market. In other words, the software works alongside the moving market, providing you set the correct parameters to equate for unforeseen spikes. However, I can only enhance the settings for unknown future events based on the algorithm’s reaction to historic data.

In a nutshell, the strategy behind creating the AI is that I can take advantage of a 24-hour market without having to constantly monitor it. There is always a risk involved, but my goal is to find the optimum settings that equate to a risk that I am comfortable with. You may not completely understand the theory behind this, but essentially, the algorithm is placing trades for you based on volatility and market pressure from buyers and sellers. This is what professional traders are constantly observing, but the software can analyse every single fluctuation of price much more easily.

If you’ve read this far and are intrigued, but still struggling to understand the strategy, take my word for it, most people I explain this too struggle to conceptualize the method. So just like when reading a scientific paper, ignore the complicated method and focus on the results obtained thus far.

Why am I crowdfunding — (Shouldn’t I be rich from all my trading?)

The reason why I am crowdfunding is, so I can continue my research and development and possibly get external help. The profit I have made from my trading has already been invested in getting to this stage, with my algorithm. However, the reason why I cannot use the algorithm yet is that I don’t yet have the correct parameter settings. I have tried and tested a range of numbers, which all work well when the market is somewhat smooth, but the settings need to be accurate when the market gets choppy.

Another reason why I am crowdfunding is to hear your opinion. So far, only my closest friends know that I’m trying to crack this code.

Thank you for taking the time to read about my adventure!

“The path from dreams to success does exist. May you have the vision to find it, the courage to get on to it, and the perseverance to follow it.” — Kalpana Chawla

Shivalay Kara

My gofundme page:



Shivalay Kara

Just someone who’s passionate about making money through passive income.