dtx
DeepTraderX: Challenging Conventional Trading Strategies with Deep Learning in Multi-Threaded Market Simulations
In this paper, we introduce DeepTraderX (DTX), a simple Deep Learning-based trader, and present results that demonstrate its performance in a multi-threaded market simulation. In a total of about 500 simulated market days, DTX has learned solely by watching the prices that other strategies produce. By doing this, it has successfully created a mapping from market data to quotes, either bid or ask orders, to place for an asset. Trained on historical Level-2 market data, i.e., the Limit Order Book (LOB) for specific tradable assets, DTX processes the market state $S$ at each timestep $T$ to determine a price $P$ for market orders. The market data used in both training and testing was generated from unique market schedules based on real historic stock market data. DTX was tested extensively against the best strategies in the literature, with its results validated by statistical analysis. Our findings underscore DTX's capability to rival, and in many instances, surpass, the performance of public-domain traders, including those that outclass human traders, emphasising the efficiency of simple models, as this is required to succeed in intricate multi-threaded simulations. This highlights the potential of leveraging "black-box" Deep Learning systems to create more efficient financial markets.
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Digital Therapeutics: DTx
The Digital Therapeutics Alliance defines DTx as products that "deliver evidence-based therapeutic interventions to patients that are driven by high quality software programs to prevent, manage, or treat a medical disorder or disease." The top 10 most funded Digital Therapeutic (DTx) companies have collectively raised over $2B in funding, and digital health M&A is significantly bigger. As of December 2020, the top 20 digital health mergers and acquisitions totaled $50B. Back in 2017 at SXSW, ABC's "Shark Tank" investor Mark Cuban predicted the first person with a Net Worth of over $1T will be working in Artificial Intelligence. "… the world's first trillionaires are going to come from somebody who masters AI and all its derivatives and applies it in ways we never thought of … " Mark Cuban Most of the current digital therapeutics companies are focused on diseases or disorders with a behavioral component that can be leveraged to improve health.