Software beats humans at Commodities trading

Discussion in 'Trading Software' started by MGB, Feb 8, 2001.

  1. MGB


    "IBM’s Thomas J. Watson research facility is famous for pitting computers against humans and having the computers win. For example, the company’s Deep Blue supercomputer trashed chess world champion Garry Kasparov at his own game. Now Big Blue itself sets its silicon wits against commodities traders."

    An interesting read.

  2. Grabbit


  3. tymjr


    I quit.
  4. Grabbit


  5. tntneo

    tntneo Moderator

    Remember these threads about system trading and automation of trading and supercomputer thing ?
    well.. told you !



    PS : IBM never intended to make money with a computer which can play chess. You had to know what they really had in mind.
  6. Chessmaster 3000 at a "high gear" is very hard to beat !!
    So Big Blue showed nothing. Trading futures and chess has
    a much in common as driving a Ferrari versus a Chevy Pickup
    truck. Having said this a good software taken out the "human
    element" could possibly be a success in one market. Ie.
    have a sp index trading software that can't be used for say
    currencies. Most trading error is what we make of them; we
    simply said - "fuck up".
    Having sid this; the main problem is that even if you had a
    program you would tend to second guess it ie. it would
    have to run on "auto pilot" without the possibility of
    human intervention !!! Oh yeah !!!!
  7. jaan


    i belong to a group that does fully automated trading, and - at least for us - second guessing is not a problem at all.

    think of it this way: an automated system is like an expert trader with an excellent track record. you usually don't second-guess an expert, especially when all his decisions are supported by historical probabilities.

    - jaan
  8. Why would they even want to do this without using investment professionals? I'll bet my dog could've beat whatever clowns they chose to make the computers look good. I'll wait to be impressed.

  9. tymjr


    Now that'd be a contest! Dog vs. Clown. Whoa! I'd pay to see that one.
  10. jaan
    can i ask you what your group trades ? I would guess futures
    also i know that any true program need a very deep pocket
    I mean seven zeros !!!!!!! anyway welcome to my nightmare
    - us daytrading ;) on a shoestring
    #10     Aug 11, 2001