AI Trading the Market

The "Black Box" of algorithms, particularly deep learning algorithms make grasping how decisions are made virtually impossible. These include trading decisions, investment decisions, and risk management decisions. The communication mechanisms inside the AI System is not transparent. When money is lost, it's difficult for the hedge fund or the regulatory body to reconcile that loss to any foul-play. If the AI System is at the center, then it is the AI System that is responsible.