Comment on Is AI self-selecting through the stock market?
makeshiftreaper@lemmy.world 2 weeks ago
Most algorithmic trading is not done by AI and won’t be at any time in the near future. Algo trading is primarily used for HFT (high frequency trading) and fundamental trading, both of which AI are terrible for. In the HFT world traders are fighting for fractions of microseconds, so AI is far too slow to be helpful. Trading on fundamentals also won’t work with AI because AI makes frequent (by trading standards) math errors
bjorney@lemmy.ca 2 weeks ago
Things like gradient boosting, supervised + reinforcement learning, NLP (sentiment analysis), etc have been used in algorithmic trading for decades.
Hell, much to the chagrin of statisticians, some people even lump linear regression under the AI umbrella
makeshiftreaper@lemmy.world 2 weeks ago
You’re correct on fundamentals and technicals, it’s been a while since I took a Financial Mathematics class and I don’t remember doing very well in it regardless