No, You can't train AI to trade for you. But you can absolutely use...
PyQuant News 🐍@pyquantnews
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Feb 15, 2024
~1 min read
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:
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:
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Generating trading ideas
Use generative AI tools as a research assistant to generate trading ideas.
Tools: ChatGPT
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
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
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
Capture the most important information from a multi-dimensional time series.
Tools: PCA, Manifold Learning, Autoencoders
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Image recognition
Hedge funds pay top dollar for satellite images that help them detect the supply of oil.
Tools: Deep Neural Networks
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
Some strategies cannot be tested because of a lack of historic data.
Tools: Reinforcement Learning