HAL-Buffett 9000 To Make 50 Percent Of Trades By 2010
Computers will make more than half of all stock purchases by the year 2010, according to Boston-based consultants Aite Group LLC. The perfect system will be a combination of the best human investors (like Warren Buffett) and computer systems that can calculate without emotions like greed or fear (like the fictional HAL 9000 from 2001: A Space Odyssey). Last year (2006), just one-third of all trades were driven by automated stock-picking programs.
(HAL-Buffett 9000 Computer [concept])
Computerized analysis can generate a quantifiable advantage. According to a November, 2005 study big-cap U.S. stock funds run using quantitative investing beat those run by ordinary mortals.
Mathematicians and brokers labor in secret at Wall Street firms like Lehman Brothers Holdings, Inc. Their algorithms spot trading advantages in the patterns of world markets. At the Stern School of Business, Vasant Dhar is trying to program a computer to factor in the impact of unexpected events (like the death of an executive).
The AIs of the future will take advantage of a variety of techniques that are in development now:
- Extract trends from massive data sets
- Understanding human language (natural language processing) will open huge new sources of information, like emails, blogs and even recorded conversations (one start-up, Collective Intellect, uses basic NLP programs to look through 55 million blogs for hedge fund tips)
- Lehman Brothers has used machine learning programs to examine millions of bids, offers, specific prices and buy/sell orders to find patterns in volatility and prices.
Advanced computer trading programs may one day tell human investors to relax and let them do the work, just like HAL did:
"Hal, switch to manual hibernation control."
"I can tell from your voice harmonics, Dave, that you're badly upset. Why don't you take a stress pill and get some rest?"
"Hal, I am in command of this ship. I order you to release the manual hibernation control."
"I'm sorry, Dave, but in accordance with special subroutine C1435-dash-4, quote, When the crew are dead or incapacitated, the onboard computer must assume control, unquote. I must, therefore, overrule your authority, since you are not in any condition to exercise it intelligently..."
(Read more about HAL 9000)
(HAL 9000 in charge)
Scroll down for more stories in the same category. (Story submitted 5/5/2007)
Follow this kind of news @Technovelgy.
| Email | RSS | Blog It | Stumble | del.icio.us | Digg | Reddit |
you like to contribute a story tip?
Get the URL of the story, and the related sf author, and add
Comment/Join discussion ( 0 )
Related News Stories -
Legal Profession Now Fairly Bristling With AI
'The virtual counsel appeared to be about forty-five years old and prosperous.' - Greg Bear, 2007
Venezuelans Teaching Your Self-Driving Car
‘She wouldn't stop until Antar had told her everything he knew...’ Amitav Ghosh, 1995.
Pun Generation Via Neural Nets
'You said you wanted him to be able to distinguish between laugh-power in different gags...' - William Tenn, 1951.
Can We Comprehend Deep Learning Systems?
'You’ve nothing remotely like it, so I can’t describe it to you.' - Lewis Padgett, 1943.
Technovelgy (that's tech-novel-gee!)
is devoted to the creative science inventions and ideas of sf authors. Look for
the Invention Category that interests
you, the Glossary, the Invention
Timeline, or see what's New.
Road Noise Charges Electric Cars With Peugeot Piezoelectric Billboard
''... major cities of Earth have free electrical power conveniently processed from their own noise.'
Unsinkable Metal Latest Gates Obsession
'A metal... light as cork.'
M-Blocks 2.0 Self-Assembling Robots
'Faster the cubes moved...'
NASA 'Broomstick' Recalls SciFi Ideas
'The appearance was enough like a giant witch's broom to justify the nickname.'
Orbital Display's Low Earth Orbit Advertisements
'A vast circle of scarlet stars came up into the greenish desert dusk.'
Neuromorphic Computing Hardare
'He had constructed an organ, a brain, of metal, entirely inorganic and lifeless...'
Vascularized Human Skin 3D Printed
Trillionaires Still Earth-Bound
'I shall never forget the sight... when the yellow gleam of the precious metal appeared under the star dust.'
Digit V2 Bipedal Robot From Agility Robotics
Oh, and now I suppose someone will develop the robotic porch pirate.
3D Printed Dubai Building Is World's Largest
'This thing will start at one end of ...a house and build it complete to the other end, following drawings only.'
Grow Plants On Moon Or Mars!
'In contrast to the airless desolation outside, the interior of this five-acre greenhouse was the one most desirable place to be.'
California Gets Shockwave Rider-Style Avoidance Zones
'It was cheaper to pay the refugees to go without up-to-the-minute equipment.'
Microbot Interstellar von Neumann Explorers
'Evidently they have never had a planet of their own...'
Hail SmartCan! Your Trash Bin Takes Itself Out
'...a waste can twenty feet away stirred into life.'
Finally! Microsoft Surface Neo And Surface Duo Implement Excellent Courier Idea
'Runcible, whose pages were thicker and more densely packed with computational machinery...'
Tap Strap 2 Now With Air Mouse
'He waved his hand and the circuit switched abruptly.'
More SF in the News Stories
More Beyond Technovelgy science news stories