Hedging with Machine Learning
There are many ways to reduce trading risk through hedging. Funds typically use futures and options to hedge each trade. Similar to insurance, this safety net comes at a price. Using an AI-based strategy, though, there is a way to protect a position at a much lower cost. Before McDonald's could introduce Chicken McNuggets, they had to hedge against the cost of chicken.
Jun-7-2018, 08:26:43 GMT