In this blog I'll talk about various subjects around working with market data. Getting the data, transforming it, making it available for analysis and extracting knowledge from it is the name of the game. We will get the job done using a fully open source stack. I hope to give you a good idea of what it takes to put together the technology stack to work with fundamental and technical market data.
Sunday, May 6, 2018
How could AI help traders?
We could have a.i. help traders keep an eye on a much broader spectrum of instruments. Where the tasks of scanning the market for specific conditions is automated, a trader is presented with an opportunity containing relevant risk metrics and a recommended exposure based on Kelly criterion. From there the trader can make a decision on how to trade this idea, buy and hold? scalp around the idea buying the dips and selling the rallies? a derivatives play? Once the decision is made, the execution of the trade is also automated with the machine carrying out the necessary steps to accumulate the position and later distribute it for taking a profit or stopping a loss.
At first, these tools wouldn't be very different from today's technical analysis indicators and order execution algorithms. But they could evolve by taking into consideration each trader's personal style, level of sophistication and current capital allocations.
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