The trader equivalent of AlphaGo is coming

OddTrader · May 27, 2017

The highest rank for human is at 9 ran. https://en.wikipedia.org/wiki/Go_ranks_and_ratings

AlphaGo could be possibly at 20 ran, as suggested!

The trader equivalent of AlphaGo is coming

http://www.ejinsight.com/20160531-the-trader-equivalent-of-alphago-is-coming/

Combining big data technology with artificial intelligence (AI), machines should one day be able to learn to invest on their own, according to experts.

Some recently-launched hedge funds already depend on computer modeling for trading operations.

There is data suggesting that computers can do a better job than humans, Che Pinjue, a partner at venture capital firm Sequoia, noted in the Hong Kong Economic Journal.

Taking in a huge amount of information from news and social platforms, the trading robots can feed the data into tens of thousands of prediction models and figure out a suitable trading strategy.

“Put simply, artificial intelligence system can create an army of digital traders, and test their trading performances against historical data,” says Che.

“The best ones will then be selected and their trading strategies further refined through rounds and rounds of such back testing. Finally, a super trader can be created, like the AlphaGo that beat world class Go player Lee Se-dol.”

In March this year, Google DeepMind’s AlphaGo beat Korean professional Go player Lee Sedol in a contest in Seoul, marking a huge victory for the field of artificial intelligence.

While AI is expected to be adopted more in the world of professional investing, robot traders will however work best only in highly transparent markets.

Their investment horizon is also expected to be relatively short, ranging from seconds to a few months at the most.
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entropytrading · May 27, 2017

agree

helpme_please · May 28, 2017

The fund managers are in danger of either having their high salaries cut or their jobs lost to machines. Passive funds are a form of machine trading. It is already happening today.

OddTrader · May 29, 2017

Reuters - Morgan Stanley stands down from expensive recruiting wars

Vic Daniels
@vicdanielsHITC
1 day ago

http://www.hitc.com/en-gb/2017/05/24/reuters-top-firm-stands-down-from-expensive-recruiting-wars/

No more battles for talent.

Morgan Stanley, the biggest U.S. brokerage by head count, told brokers Tuesday that it is standing down from the expensive recruitment wars, following similar steps taken earlier this month by competitor Bank of America Merrill Lynch.

Morgan Stanley, which has more than 15,000 brokers, will "significantly reduce experienced adviser recruiting," according to a staff memo from Morgan Stanley co-heads Shelley O'Connor and Andy Saperstein that was viewed by Reuters. The news was reported earlier on Tuesday by the Wall Street Journal.

Merrill Lynch announced that, starting in June, it will no longer offer new prospects or recruits big upfront bonus checks to join its firm, a common and costly industry practice.

For years, brokerage executives have complained about the ceaseless competition among Wall Street firms to offer ever more lucrative recruitment packages to gain top advisers and their clients and assets.

Hit the link below to access the complete Reuters article:
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The trader equivalent of AlphaGo is coming

OddTrader

entropytrading

helpme_please

OddTrader