Key Focus

  • The answer is no, but examining the differences is critical in forming realistic expectations of AI in capital markets.
    With the car, there really is a code to be cracked. The problem largely involves geometry, immutable laws of motion and known roadways
  • Given the success of machine learning in domains involving vision and language, we should not be surprised at exuberant claims or expectations in capital markets as well.
    Having operated systemic machine-learning-based investing programs for two decades, I don't believe there is a code to crack


To understand how to read this report, please click here

Knowledge Graph(Read more)

Complex Event Analysis(Read more)


High Level Topics

  • MARKETS
  • PERFORMANCE
  • LEARNING
  • High Level Abstractions

  • MARKETS(3, 0 Order)
  • ( MARKETS )(3, 0 Order)  top
  • ( MARKETS, ONE-MINUTE )(1, 1st Order)  top
  • ( MARKETS, MACHINE-LEARNING-BASED )(1, 1st Order)  top
  • ( MARKETS, LEARNING )(1, 1st Order)  top
  • ( MARKETS, CAPITAL )(2, 1st Order)  top
  • ( MARKETS, TRADING )(1, 1st Order)  top
  • ( MARKETS, ROADWAYS )(1, 1st Order)  top
  • ( MARKETS, LAWS )(1, 1st Order)  top
  • ( MARKETS, INTELLIGENCE )(1, 1st Order)  top
  • PERFORMANCE(2, 0 Order)
  • ( PERFORMANCE )(2, 0 Order)  top
  • LEARNING(2, 0 Order)
  • ( LEARNING )(2, 0 Order)  top
  • References

    • ( MARKETS )  top
    • ( MARKETS, ONE-MINUTE )  top
    • (Read more)   top... predictable intraday patterns in the financial markets that arise from the actions of humans and machines. Such data are very dense in the sense that over an eight-hour trading day, the machine has 480 one-minute samples from which to learn to make one-minute predictions.
    • ( MARKETS, MACHINE-LEARNING-BASED )  top
    • (Read more)   topET
      By Vasant Dhar
      Ask these 5 questions before you invest with a machine-learning-based program
      Recent reports suggest that artificial intelligence will "crack the code" of financial markets by using big data and machine learning
    • ( MARKETS, LEARNING )  top
    • (Read more)   top
      Recent reports suggest that artificial intelligence will "crack the code" of financial markets by using big data and machine learning. Given the success of machine learning in domains involving vision and language, we should not be surprised at exuberant claims or expectations in capital markets as well.
      Having operated systemic...
    • ( MARKETS, CAPITAL )  top
    • (Read more)   topGiven the success of machine learning in domains involving vision and language, we should not be surprised at exuberant claims or expectations in capital markets as well.
      Having operated systemic machine-learning-based investing programs for two decades, I don't believe there is a code to crack
    • (Read more)   top The answer is no, but examining the differences is critical in forming realistic expectations of AI in capital markets.
      With the car, there really is a code to be cracked. The problem largely involves geometry, immutable laws of motion and known roadways
    • ( MARKETS, TRADING )  top
    • (Read more)   top... Boys," machines are able to learn predictable intraday patterns in the financial markets that arise from the actions of humans and machines. Such data are very dense in the sense that over an eight-hour trading day, the machine has 480 one-minute samples from which to learn to make one-minute predictions
    • ( MARKETS, ROADWAYS )  top
    • (Read more)   top. The problem largely involves geometry, immutable laws of motion and known roadways.
    • ( MARKETS, LAWS )  top
    • (Read more)   top. The problem largely involves geometry, immutable laws of motion and known roadways.
    • ( MARKETS, INTELLIGENCE )  top
    • (Read more)   topET
      By Vasant Dhar
      Ask these 5 questions before you invest with a machine-learning-based program
      Recent reports suggest that artificial intelligence will "crack the code" of financial markets by using big data and machine learning
    • ( PERFORMANCE )  top
    • (Read more)   topAdditionally, the sobering law of machine-based trading is there is an inverse relationship between performance and capacity of a program. Systematic AI machines are subject to the same law. To clarify the role of machine learning in prediction, it is useful to ask whether training an AI system to trade...
    • (Read more)   topThe bigger the holding, the longer it must be held. Therefore, the data available to learn from are sparser, and the outcomes more uncertain. Performance degrades rapidly with the holding period, especially if you hold overnight. There is no free lunch. In the early 2000s I ran a high-frequency program that rarely lost money, but it couldn't...
    • ( LEARNING )  top
    • (Read more)   topOpinion: Machine learning won't crack the stock market. but here's when investors should trust AI Published: June 8, 2020 at 8:37 a.m
    • (Read more)   top ... questions before you invest with a machine-learning-based program Recent reports suggest that artificial intelligence will "crack the code" of financial markets by using big data and machine learning. Given the success of machine learning in domains involving vision and language, we should not be surprised at exuberant claims or expectations in capital markets as well. Having operated systemic...