[huzzug]

Quote:

We set out to develop labs that would show how to marry the basic building blocks like auto-encoders, recurrent neural networks, reinforcement learning, with very relevant finance problems like algorithmic trading, statistical arbitrage, optimising trade execution, and so we have done that.

http://www.newsweek.com/nvidia-teaches-world-about-deep-learning-finance-689170

Still pertain only to financial markets, but should morph further to include MIS reporting for internal performance appraisals.

 

[mAs81]

Link leads back here..Source??

 

[James296]

Quote:

Originally Posted by mAs81

Link leads back here..Source??

What? don't like playing Mary-go-round

 

[EniGma1987]

Whatever your stance on whether computers running a trading program/algorithm that someone designed should be legal or not, this is taking it way too far. Now it isnt even a human designing the algorithm they let run, it is computers that can learn and start to think for themselves managing the money and trades.

 

[ilmazzo]

IA in trading.

The beginning of the end of turbo finance capitalism, I like it!

Cameron predicted it with Skynet but was wrong regarding the field where the nukes would have been dropped: wall street!

 

[mAs81]

Deep learning programs excite me and frighten me at the same time..Even tho "Deep learning frameworks allow researchers to very quickly structure these networks and not have to recreate the wheel in terms of software every time." there are many things that can go wrong when relying entirely on them for research..Then again, a lot of aspects in scientific(or not) research could use the extra processing power..

I'm really torn on this,but will continue to watch closely..

 

[huzzug]

Quote:

Originally Posted by EniGma1987

Whatever your stance on whether computers running a trading program/algorithm that someone designed should be legal or not, this is taking it way too far. Now it isnt even a human designing the algorithm they let run, it is computers that can learn and start to think for themselves managing the money and trades.

I'm not much interested in Stocks, but what AI could bring to "What If" scenarios is exciting. Current methods of NPV, Payback & EVA's would be a thing of the past if AI in these fields could bring entirely new concepts to forefront.

 

[Defoler]

In a way, this is frightening that a company can use a large data centre instead of the old fashion analysists who know their markets, study it, live it, and hence know how to trade well in it, and just automate everything, from learning consequences of a certain stock trade to predict effects of mass trading in one market to other markets, pretty much give a huge advantage to certain companies, and in that make certain companies into super companies in the future.

On the other hand, nvidia really show how they are pushing the boundaries of the GPU market and find new markets for their cards.
I wonder if the future, the desktop GPU market is going to be dwarfed compared to the data centre market, since it feels like in the future every company is going to either need to have a strong AI support, or they will be run over by the ones who do.

Either way, it is an interesting feat that they were worked on the algorithms and how to implement them themselves, instead of waiting for someone else to figure it out.
This is where I guess goes a large part of their R&D budget.

 

[maltamonk]

Imo regulators should ban AI from trading. I can only imagine that it'll just accelerate income inequality.

 

[JackCY]

Yes, yes... just feed the bubble that doesn't create anything and rips everyone off.

They are already AI trading and making decisions, the whole thing is automated for ages on a certain level already.

 

[rudyae86]

Could deep learning also affect a blockchain? Like some decentralized exchange?

 

[Excession]

Quote:

Originally Posted by maltamonk

Imo regulators should ban AI from trading. I can only imagine that it'll just accelerate income inequality.

Income inequality should be combated by ensuring that wealth is redistributed throughout the population, rather than by banning methods which could increase society's wealth.

 

[Defoler]

Quote:

Originally Posted by Excession

Income inequality should be combated by ensuring that wealth is redistributed throughout the population, rather than by banning methods which could increase society's wealth.

So, socialism?
Quote:

Originally Posted by JackCY

the whole thing is automated for ages on a certain level already.

Distinguish between automation and AI.
In automation, someone put the rules there. In an AI, it will make the rules as it goes. Those are very different concepts.

For example if you are following a certain market, you set X amount of parameters for a choice. Like over simplifying, if a weather event is about to happen in an area that grows a lot of corn, you will know that soon there will be shortage, so you might as well pre-buy the corn now when the price is low, and sell later when the supply is short and prices go up.
But you have to know the weather affects, the area, and the corn.

On the other hand, an AI can figure out lets say that a new big housing project is about to happen, it means a lot of trees will be taken down in a certain area as the AI will figure out which company will be the best to sell the trees, which might lead to a certain change in climate area, and in turn might bring bad weather, and so, in about 1-2 months, it will mean a shortage of corn. So buy now before even the weather starts to go bad, and the price is as low as it goes.
And you don't need to tell the AI about the weather. It will figure it out on its own over time.

So while you as a person knows up to a certain distance of effect on a market, the AI can learn 3-4 or even 10 steps further than you might even be considering, and gives you a better more accurate and higher incoming solution.
Like who knew that a projected housing next year, is going to drive corn prices up significantly in 3 years?

And you might even have zero knowledge and absolutely no analytical information about corn. The AI will just figure it out on its own.
Q: "AI, what should I buy?" A: "Corn, in 10/2/2018, sell in 12/5/2018, 30% profit".

This is just an example, but you get the point I hope.

 

[lonsor]

Not sure if it makes a big difference... these things already exist...FIX protocol, data analysis... it's interesting but not much else, investing is decision-making with incomplete information, applying mosaic theory, critical thinking ... not sure if AI can do that... in fact it can come to wrong conclusions if it's just data snooping (which humans already do).

 

[huzzug]

If DrivePX is anything to go by, AI are much less likely to come to wrong conclusions.

 

[Liranan]

Quote:

Originally Posted by Excession

Quote:

Originally Posted by maltamonk

Imo regulators should ban AI from trading. I can only imagine that it'll just accelerate income inequality.

Income inequality should be combated by ensuring that wealth is redistributed throughout the population, rather than by banning methods which could increase society's wealth.

If by society you mean the richest few then you are right.

Until not long ago economics was not considered science and fell under political sciences as most economic models are fake and just a bunch of idea's created by rich men for their own benefit.

Quote:

Originally Posted by JackCY

Yes, yes... just feed the bubble that doesn't create anything and rips everyone off.

They are already AI trading and making decisions, the whole thing is automated for ages on a certain level already.

Exactly, this is high speed looting is nothing new, it will just be even faster.

 

[valentyn0]

Quote:

Originally Posted by Excession

Income inequality should be combated by ensuring that wealth is redistributed throughout the population, rather than by banning methods which could increase society's ELITE wealth.

There, now it makes sense.