1. The details on the software are not enough for us to understand the need and requirement. So it would be helpful if you can send me more details. - Suprabhat Lala
A. The premise of the software is that typically online traders do not take advantage of market correlations to reduce risk. This is not because they are ill informed but because - while they can have an intuitive (what we call gut) feeling for market expectation and also some feeling for the volatility, it is NOT humanly possible to appreciate the subtlety of the covariance structure of the market without tools.
Our software is not to help in picking stocks - but in optimally allocating or divesting from the portfolio such that the portfolio as a whole minimises variance. This is however done without changing the return expectation of the portfolio.
If you are familiar with the concept of an efficient frontier, our tool finds the portfolio using the stocks chosen by the user which matches the return expectation of the users portfolio at the least possible risk (variance).
These kinds of solutions involve complex multivariate analysis in the backend coupled with a monte carlo market simulation. This kind of software is used by large investment houses - and we would like to bring this technology to the smallest investor via broker sites.