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@pyquantnews: No,You can't train AI to tra...

@pyquantnews
6 views Feb 15, 2024
1
No,

You can't train AI to trade for you.

But you can absolutely use it in trading.

Here's a summary of how traders use AI and ML in trading:
2
Generating trading ideas

Use generative AI tools as a research assistant to generate trading ideas.

Tools: ChatGPT
3
Clustering

Grouping securities with similar risk and return characteristics to improve asset allocation.

Tools: K-Means Clustering
4
Extracting text from transcripts

Use natural language processing to extract useful tokens from text transcripts.

Tools: NLTK, SpaCy
5
Dimensionality reduction

Capture the most important information from a multi-dimensional time series.

Tools: PCA, Manifold Learning, Autoencoders
6
Image recognition

Hedge funds pay top dollar for satellite images that help them detect the supply of oil.

Tools: Deep Neural Networks
7
Synthetic time series data

Some strategies cannot be tested because of a lack of historic data.

Tools: Reinforcement Learning
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