AI is already in use by institutional traders and increasingly part of tools for individual traders. High speed trading is dependent on forms of AI. There are Hedge Funds that are completely automated with AI based systems doing all trades. Many of these systems predict micro movements based on a multitude of factors and historical data. Those trades are done hundreds and thousands of times a day. So yes to an extent they do predict the stock market.
Not all firms who do all trades by AI want to make public the fact that they are reliant on machines to make trades. Some of the early adopters of AI trading who have gone public saying they rely on AI technology include Aidyia, Sentient Technologies, Two Sigma, and Renaissance Technologies. Reportedly Bridgewater Associates and Point72 Asset Management are moving in the same direction. There are many large firms who are using AI but unwilling to go public. The results of AI have not been earth shattering with 2 percent return being the reported results of one of the firms.
Will all institutional trading move to AI based systems, yes. Because there are rules in place that allow the roll back of trades if the AI system collectively make bad trades that create a crash situation in the markets the trades can be rolled back. You have heard of programmed trades, AI is now part of programmed trades and the rules are the escape hatch. That limits risk so most likely the future stock market will increasingly be AI run. The bigger issue delaying adoption is finding the algorithms that enable greater returns per trade.
Not all firms who do all trades by AI want to make public the fact that they are reliant on machines to make trades. Some of the early adopters of AI trading who have gone public saying they rely on AI technology include Aidyia, Sentient Technologies, Two Sigma, and Renaissance Technologies. Reportedly Bridgewater Associates and Point72 Asset Management are moving in the same direction. There are many large firms who are using AI but unwilling to go public. The results of AI have not been earth shattering with 2 percent return being the reported results of one of the firms.
Will all institutional trading move to AI based systems, yes. Because there are rules in place that allow the roll back of trades if the AI system collectively make bad trades that create a crash situation in the markets the trades can be rolled back. You have heard of programmed trades, AI is now part of programmed trades and the rules are the escape hatch. That limits risk so most likely the future stock market will increasingly be AI run. The bigger issue delaying adoption is finding the algorithms that enable greater returns per trade.
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ONEZYPHER © LTD-2021: All rights reserved.