You know how people keep saying that only the expert in a given field can give you the most accurate forecasts? People in Cindicator think otherwise. They generate accurate financial signals and forecasts for traders and hedge funds by connecting them to the collective intelligence. That’s to say they hope to get rid of analyst’s bias to get more accurate results.
The people behind this Russian and American startup are Mike Brusov (CEO), Artem Baranov (COO) and Yuri Lobintsev (CTO). They have mathematical and big data background and 8 years of experience in SaaS and big data startups.
Their idea is pretty ingenious. They decided that even the most reliable experts are not always right and tried to eliminate them from the forecast making. Instead of having a single person making a prediction, thus being more easily biased, they decided to trust the crowd. They used the “wisdom of the crowd” theory which says that if you ask enough people coming from diverse backgrounds, they’ll give you more reliable forecasts than the best of the best. The Crowd Indicator shows the average opinion of a diverse group of people which in 80% is always more accurate than an expert’s opinion.
“We solve the main problem of current financial predictive analytics: centralisation and non-diversity. Cindicator uses the synergy of Collective and Artificial Intelligence for generating diverse and decentralized financial signals and forecasts.”
There are a few key factors that allow for a good forecast. Thanks to the decentralised system, people don’t know one another. They can get influenced by someone else’s opinion, thus skewing the results. What’s more, the group has to be diverse: instead of people from one community, you get people from different backgrounds. A student’s opinion is as relevant as that of a professor.
Cindicator, the platform serves to aggregate the collective wisdom of the crowd in order to give rational forecasts. To keep the forecasters motivated, top 2% gets cash prize funds. What’s more, Cindicator uses gamification so people can challenge their friends and compete with other players.
Okay, but what’s in it for you?
Cindicator provides a huge amount of diverse and decentralised non-professional analytics, which in turn generate accurate signals for trading and investing. Backtest of using of their data get +140% in performance for 5 months.
They’ve raised in funding $270k in convertible note from VC and angel investors. They’re developing rapidly. At the moment they’ve got 3 pilots hedge funds (B2B) and 35 swing traders (B2C). Moreover, they’ve got 700 active forecasters/analyst monthly.