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)

Via Bloomberg.com.

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 |

Would you like to contribute a story tip? It's easy:
Get the URL of the story, and the related sf author, and add it here.

Comment/Join discussion ( 0 )

Related News Stories - (" Artificial Intelligence ")

Evorus Your Crowd-Powered Conversational Assistant
'...the DS [Daily Schedule] was suddenly transformed into a valued confidante.'

Alibaba's AI May Read Better Than You
'Mike ... could accept other languages and was doing technical translating - and reading endlessly.' - Robert Heinlein, 1966.

Orwell's Memory Hole Looms Larger Thanks To Nvidia
'All history was a palimpsest, scraped clean and reinscribed exactly as often as was necessary.' - George Orwell, 1948.

SciFiQ Science Fiction Writing Aid
'Books were just a commodity that had to be produced, like jam or bootlaces.' - George Orwell, 1948.

 

Google
  Web TechNovelgy.com   

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.

 

 

 

 

 

Current News

A 'Genuine Nanorobotic Production Factory'
'Microscopic machinery, smaller than ants, smaller than pins, working energetically, purposefully - constructing something...'

Neuromorphic Computer Offers Non-von Neumann Architecture
Fires faster than brain at 1/10K energy.

Evorus Your Crowd-Powered Conversational Assistant
'...the DS [Daily Schedule] was suddenly transformed into a valued confidante.'

Mealworms Food Of The Future
Get your grubs on.

Alibaba's AI May Read Better Than You
'Mike ... could accept other languages and was doing technical translating - and reading endlessly.'

Musk's Boring Flamethrower
'Skeletons in tatters. Burned by a flesh gun'

Humanity Star LEO Advertisement?
'Everyone has noticed those enormous advertisements...'

Nissan ProPILOT Slippers Are Self-Parking, Autonomous
Beyond science and fiction.

Atomristors - Atomic Memristors - Using Thin Nanomaterials
'I could almost feel those little tunnel junction neuristors working, forming their own interconnections as I operated it.'

Bigelow Prepares Inflatable Lunar Hotel
'Suddenly, hitherto unheard-of sums of money became available for investment in civilian orbital stations.'

Drunk Driver Of Tesla Claims Autopilot Was In Charge
'Mr. Garden, you are in no condition to drive.'

Medical Exoskeleton From Cyberdyne Gets FDA Approval
It's been a long road for HAL-5; I started writing about it in 2005.

Fungi-Infused Concrete Repairs Itself
'I noticed that curious mottled knots were forming, indicating where the room had been strained and healed faultily.'

Shiftwear Display Shoes
'He unlaced her shoe and glanced at its readout.'

NASA SEXTANT First With X-Ray Nav In Space
'You need at least four beacons for an accurate fix.'

GM Introduces Cruise AV With No Steering Wheel
'How about the steering wheel?' ... 'I do not need one.'

More SF in the News Stories

More Beyond Technovelgy science news stories

Home | Glossary | Invention Timeline | Category | New | Contact Us | FAQ | Advertise |
Technovelgy.com - where science meets fiction™

Copyright© Technovelgy LLC; all rights reserved.