Machine Learning Is Revolutionizing Stock Predictions

Stock predictions made by machine learning are being deployed by a select group of hedge funds that are betting that the technology used to make facial recognition systems can also beat human investors in the market. Computers have been used in the stock market for decades to outrun human traders because of their ability to make thousands of trades a second. More recently, algorithmic trading has programmed computers to buy or sell stocks the instant certain criteria is met, such as when a stock suddenly becomes cheaper in one market than in another -- a trade known as arbitrage. Machine learning, an offshoot of studies into artificial intelligence, takes the stock trading process a giant step forward. Pouring over millions of data points from newspapers to TV shows, these AI programs actually learn and improve their stock predictions without human interaction.