Artificial Intelligence (or AI) is already playing a role and it is changing the markets in many ways. In this blog post, the author shares his views on the repercussions of this transformation. What you'll learn: Covered Call, Protective Put, Iron Condor, Bull Call, Bear Put

Technology moves at a startling speed and it has been the same case in the algorithmic and quantitative trading domain. Traders around the world are making use of Machine Learning, Artificial Intelligence, Blockchain, Neural Networks, Deep Learning and similar techniques to execute their trades. One of the key factors to benefit from the ever-changing trend in technology is to learn the impact of the evolving ways that other traders use and learn from their mistakes.

Aquant, a New York City-based tech company, announced it has secured $2.6 million in seed funding from World Trade Ventures, SilverTech Ventures, AngeList Syndicate led by Gil Dibner, and a group of private investors in order to expand their customer base and accelerate development of the technology's abilities. Aquant, a rising name in the tech business ecosystem, has developed sophisticated AI and machine learning technology to addresses the multi-billion-dollar problem of machinery downtime that troubles service companies. The unique aspect of Aquant's technology is its ability to locate potential failures at levels that are difficult to be predicted by humans. Aquant provides service companies with a permanent solution for this problem. "The downtime problem is a $647 billion a year problem.

The more discretionary and quant traders try to analyze market price action, the higher the chances of failure. This may sound counter-intuitive because it contradicts the common belief that the more one tries to achieve a goal, the higher the chances of success. But this is not how things work in the markets. Confirmation bias is a primary cause of failure of discretionary traders. Data-mining bias is a primary cause of failure of quant traders.

The foreign exchange or forex market is the biggest financial market in the world. It is even bigger than the stock market. Moreover, the forex market continues to grow, and one major reason for this is the use of the latest technologies, including artificial intelligence. In fact, it wouldn't be wrong to say that AI is revolutionizing forex trading. According to the 2019 Triennial Central Bank Survey of FX and OTC Derivatives Markets, the forex market has a daily volume of $6.6 trillion. When so much money is at stake, it is natural for market participants to demand and develop tools that help to reduce their risk and increase their accuracy.