Artificial intelligence is everywhere, this time there is a company that uses it to stocks
Artificial intelligence is a hot topic in the scientific and technological world. Regardless of the size of the company or what it is doing, it is talking about artificial intelligence. It seems that this is the only choice.
Now someone wants to use it to stocks.
Shaunak Khire's team developed a machine intelligence system, Emma AI, which is raising funds to set up a fund and plans to start trading with Emma AI within three months. Funding is now nearing completion.
According to the information of the Emma AI official website, this system is a machine-enhanced neural search interface, designed to do financial analysis, research, forecasting, etc., such as predicting the US 10-year bond yield.
As the project leader for Emma AI, Shaunak Khire is a partner at Magha Holdings, an investment company that prepares financial indices and trades them accordingly.
In addition, he became a member of the Clinton Global IniTIaTIve Science and Technology Committee in 2010. After the earthquake in Haiti, he attempted a donation program for the Clinton-Bush Fund.
In the future, the Emma AI trade will start with the pharmaceutical giants GlaxoSmithKline (GSK), Tesla and US Treasury bonds.
Shaunak Khire believes that Emma AI can replace financial analysts and that Emma AI is different from traditional programmatic trading. Emma AI's neural network system will consider more complex factors affecting individual stocks, such as a change in a country's monetary policy.
Program trading, which has been used more and more widely in the past three decades, is a trading strategy that uses computers to conduct high-frequency trading based on existing data models. The model itself does not change due to changes in the fundamentals of the market.
Relying on computers and specific mathematical models to make trades is already common on Wall Street.
According to market research firm Preqin, there are currently about 1,360 hedge fund transactions in the United States that rely primarily on programmatic transactions, accounting for about 9% of the entire hedge fund market, and the size of the managed funds is about $197 billion.
In the Preqin survey, hedge funds for programmatic trading, compared to traditional hedge funds, did not always lead the yield, but the final five-year yield was much better.
In contrast, although the application of artificial intelligence technology in the financial field is rare, there are also some well-known hedge funds involved.
Two Sigma is a well-known hedge fund with over $35 billion in managed funds that uses natural language processing techniques to analyze the US Federal Open Market Conference Committee (FOMC).
This technology analyzes the number of occurrences of terms such as “securitiesâ€, “interest ratesâ€, and “mortgageâ€, resulting in, for example, “in 2008, FOMC’s statements about financial markets accounted for 37%†or “2007-2009, FOMC related The discussion of inflation accounts for 20%.†Conclusions, when there are more data support for traders to design trading models.
Two Sigma uses natural language processing technology to derive the proportion of FOMC issues
Renaissance Technologies is one of the world's largest hedge fund companies, featuring high-frequency programmatic trading using computers, with a fund size of more than $65 billion. In April of this year, they led a hedge fund using artificial intelligence technology, Numerai, which raised a total of $1.5 million. After obtaining a large amount of data and financial analysis reports, Numerai uses machine learning technology to predict stock market movements.
Although these experimental work is ongoing, there are no well-known hedge fund companies that have explicitly used artificial intelligence to make trading investments.
David Ferrucci, principal researcher at the IBM Watson project, joined Bridgewater, the world's largest hedge fund company, after leaving IBM in 2013. In this regard, Wall Street had thought that Bridgewater would develop an artificial intelligence trading program, and Bridgewater later denied that it would be planned in the short term.
Bridgewater added in the statement that with regard to technology's help with transactions, they value the logic computing help provided by artificial intelligence technology rather than data mining.
When the financial market falls sharply, the programmatic high-frequency trading will strictly enforce the stop loss according to the strategic model. If the whole market does this, it will easily accelerate the decline. In 2010, such an accident caused the Dow Jones Industrial Average to plummet 9% in 36 minutes, known as the trillion-dollar stock market decline.
I don't know what new problems will be encountered when artificial intelligence is directly traded.
Monocrystalline solar panels have a higher efficiency rate in generating electricity from light and are a more space-efficient solution. Durable, long living and aesthetically pleasing, these cells are the ideal solution for residential and small commercial rooftop installations.
Mono Solar Panel,Solar Cell Panel,Perc Solar Panels,Solar Panel Monocrystalline
Wuxi Sunket New Energy Technology Co.,Ltd , https://www.sunketsolar.com