Micheal Kearns of Lehman Brothers is working on artificial intelligence that can watch trades and pick up trends brokers might not notice. He is also hoping to take greed and fear out of trading decisions.
Vasant Dhar of NYU’s Stern School of Business and Kathleen McKeown of Columbia University are working on similar projects.
While artificial intelligence has done very well solving closed system problems, it has not done so well with open system problems like trading.
Financial engineering has made huge progress in the last decade. Adding in artificial intelligence is certain to take things to new levels.
For more information:
New Breakthrough Unveiled in Investment Managment: First Time Artificial Intelligence Applied to World Financial Markets
Financial Engineering News
Computer scientists working on machines that can match Wall Street traders
2 responses so far ↓
1 Anonymous // Jul 8, 2007 at 3:32 pm
Can Artificial Intelligent Software help?
In my view, the technology has not yet been developed. The technology we have today can help educate and make you a better investor. A lot of that has to do with desire and discipline to practice sound principles put forth by Buffett, Munger, and Graham.
Check ou the post labeled: Buddy “A.I.” Buffett if you are interested in a software agent that interacts with you like a pseudo-smart investor. The Avatar looks like Buffett, and it is presently capable of about 200 responses. With more volunteers, we can make it seem smarter with about 2000 responses.
http://www.pr.com/press-release/42946
2 herself // Jul 8, 2007 at 6:28 pm
Ah but Buffett and Graham both recommend not letting emotions get in the way of investment decisions and letting the numbers and the facts make the choice. I have not read Munger so I can speak as to what he/she says.
AI is perfect for stock investing. The perfect system maybe isn’t here yet but I don’t think it is far off. We know far more about chaotic systems and herb behavior of people than we did even 10 years ago. AI systems won’t panic or buy in greed like people do.
( We don’t run Windows computers here so I couldn’t try your Buddy AI )
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