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 ")

Robot Teaches Itself To Walk
'My whole idea is to get away from a machine with a set of prearranged instructions, and let them teach themselves by trial and error.' - Stephen Barr, 1960.

AI Musicians Reach For The Top Of The Charts
'I request that you feed the correlation between those dots and the levers of the panel into my memory banks.' - Herbert Goldstone, 1953.

Neural Net Discovers Antibiotic
'...instantly the TEMS was ... creating and discarding scores of new sciences.' - John M. Faucet, 1968.

CIMON Companion Robot For Space Station Astronauts
'... in some departments their power is absolute.' - James Blish, 1957.

 

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

Another Soil Bacterium Eats Plastic
'...the plastic was dissolved before his eyes.'

reLive Memorial Come Back As A Tree
'It was time - time to go again. She touched the leaf. She was wanted.'

Engineered Living Building Materials
'... it was the cheapest building material known.'

Draw Circuits With Conductive Ink
'It's rewiring things... squeezing silver toothpaste in a ribbon along the printed circuitry.'

Arkangel: Automatic Visual Censoring
It's whatever the Party says it is, Winston.

NASA Competition To Design A Bucket Drum For Moon Mining
'There was a heap of discarded ore where Grantline had carted and dumped it...'

Medical Assistant Robot May Roam The Halls Of Hospitals
'Take care, sir.'

No Autonomous Trucks? Wait, What?
'...it resembled conventional human-operated transportation vehicles, but with one exception -- there was no driver's cabin.'

As Big As A Biltong - World's Largest 3D Printer
'Huge and old, it squatted in the center of the settlement park... On the concrete platform... lay a heap of originals to be duplicated.'

Drones Used To Smuggle Contraband Into Prison
'And some mega chip inside so it never runs into anything and no cop ever sees it.'

Are You Ready For Commercial Space Travel?
'It wasn't a pleasant trip; it was a miserable trip on a miserable, undersized tourist rocket...'

Amplified Nerves Lead To Mind-Controlled Prosthetic Hands
'The electrical impulses generated by your brain command everything...'

FlyCroTug Micro Drones Do Heavy Lifting
'It extended three of its tiny arms sideways to lock on...'

Virtual Whitney Houston In Concert
Badda-Bing, Badda-Bang

Robot Teaches Itself To Walk
'My whole idea is to get away from a machine with a set of prearranged instructions, and let them teach themselves by trial and error.'

DARPA's Subterranean Challenge
Let the machines explore the underground city!

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.