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Just curious since their ability to process huge inflows of new data and existing data seems to be able to outmatch us- in almost every quantitative aspect.
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Kelly Trinh
30 Nov 2019
Backoffice technical at financial services firm
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Isaac Chan
05 Mar 2019
Business at NUS
Similar to Leonard, I also came across another article regarding this also. In essence, it disagrees that humans will be disadvantaged because we still have a value-add that these machinese don't. (https://news.efinancialcareers.com/sg-en/293432...)
For example, the article says that algorithims and quants will struggle when the market isn't volatile, since they are better at high-frequency trading, and need steps to recognise if the market is going sideways or calm. Human traders would be better at recognising these signs and the signs that they represent. Humans can also rely on their intuition. You probably also need humans to negotiate block trades, which machines really can't.
Humans are also much probably better at setting benchmarks for their trading strategy.
Another article from the financial times also disagreed. Mainly on the points that machines don't know the true intrinsic value of a share, and that they rely on historical trends and may not be able to react to new occurances. Machines are also created by humans plus their trading strategies may erode each other out over time.
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I think this recent article shocked many. _One would think that machines following emotionless a...
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I can't recall where I picked this up - but when reading about AI and what machines/humans can do I saw a quote along the lines of:
you don't ask why a car can go faster than a human can run. you don't ask why a submarine can go faster than a human can swim. why do you stress about what computers can do on the AI space.
adapting a bit - I don't see an inherent "humans must be best at trading" as a rule of nature. So eventually machines will be better and current traders will go onto to do other things.