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What Is A Quant Trader?

#artificialintelligence

Quant trading is in fashion nowadays. This article may help you in separating the wheat from the chaff. Articles about trading strategies that demonstrate exceptional skill in programming in R or Python are published almost on a daily basis. However, a large percentage of the articles violate basic trading mechanics among other things. For example, a frequent error in some articles is that some indicators are calculated based on the daily closing price but positions are also initiated at the same closing price if there is a signal.


Impact of AI and ML on trading and investing

#artificialintelligence

Very few can ignore the presence of Artificial Intelligence and Machine Learning in today's world, and even less so if you work in quantitative finance. Here, Michael Harris, quant systematic and discretionary trader and best selling author, discusses the impact these technologies are having on trading and investing.


Impact Of Artificial Intelligence And Machine Learning on Trading And Investing

@machinelearnbot

I will try to explain what I mean by this: traditional technical analysis is an unprofitable method of trading because strategies based on chart patterns and indicators draw their returns from a distribution with zero mean before any transaction costs. Traditional technical analysis, i.e., chart patterns, some simple indicators, certain theories of price action, etc., was not effective to start with. Some developed algos and AI expert systems to identify the formations in advance and then trade against them, causing in the process volatility that retail traders, also known as weak hands, could not cope with. However, some quantitative technical analysis methods often work well, such as mean-reversion and statistical arbitrage models, including ML algorithms that use features with economic value.


Impact Of Artificial Intelligence And Machine Learning on Trading And Investing

#artificialintelligence

I will try to explain what I mean by this: traditional technical analysis is an unprofitable method of trading because strategies based on chart patterns and indicators draw their returns from a distribution with zero mean before any transaction costs. Traditional technical analysis, i.e., chart patterns, some simple indicators, certain theories of price action, etc., was not effective to start with. Some developed algos and AI expert systems to identify the formations in advance and then trade against them, causing in the process volatility that retail traders, also known as weak hands, could not cope with. However, some quantitative technical analysis methods often work well, such as mean-reversion and statistical arbitrage models, including ML algorithms that use features with economic value.


Impact Of Artificial Intelligence And Machine Learning on Trading And Investing

#artificialintelligence

Below are excerpts from a presentation I gave a few months ago in Europe as an invited speaker to a group of low profile but high net worth investors and traders. The subject was determine by the organizer to be about the impact of artificial intelligence and machine learning on trading and investing. The excerpts below are organized in four section and cover about 50% of the original presentation. Artificial Intelligence (AI) allows replacing humans with machines. In the 1980s, AI research focused primarily on expert systems and fuzzy logic.