But just as Tesla’s TSLA, +4.83% Elon Musk recently claimed that the use of robots in auto assembly had gone too far and that humans needed to be brought back, the same is likely true for AI on Wall Street and its disappearing trading jobs. It is easy to be enamored by the power and speed of the new prediction machines. However, there are risks that real innovation and competitive advantage will be lost by relying solely on them.
If someone creates a new coin with a total supply of 100B and manages to get it listed on a small exchange and trades it a few times with their friends for $1 per coin, it technically has a market cap of $100B. But in reality, is has no true value and no trading volume to sustain any kind of selling pressure.
Entrepreneur and systematic trader Matthew McElligott is launching an artificial intelligence-focused quant equity hedge fund. London-based Ylang Capital will use AI and machine learning trading techniques to trade global equities and is aiming to launch with around $50m, according to sources.
AI Trader executes trades without emotion, without prejudice, without fatigue and can trade relentlessly for days and months. It’s lightning quick responses to changing market conditions cannot be replicated by human traders. Notwithstanding the significant risks of trading in a highly volatile market, AI Trader was developed to enhance your profit potential.
A major problem with trading strategies with AI is that they can produce models that are worse than random. The traditional technical analysis is an unprofitable method of trading because strategies based on chart patterns and indicators draw their returns from a distribution with zero mean before any transaction costs.