Are AI-controlled hedge funds just a myth? I can't imagine

you're right

But you can Program a machine to perform hundreds of transactions per second, selling and buying at optimal times.

I actually think this would work. Bots are not prone to irrational behavior and would operate in a structured process.

>>1275441
It's not that difficult. A researchish kinda guy would think of possible correlations there are in the market place.e.g. If the price of oil goes up yesterday, 6/10 times XYZ company goes up today and this has been true for the last 2 years.

So, he just makes a program saying if the price increase of oil was over .5% yesterday, buy, XYZ and sell at this time or when X happens.

There are also times where it happens in miliseconds. e.g. For some reason whenever Yen goes up whenever USD goes down, so, if USD goes down within the last 2 seconds, buy, Yen.

They keep trying to find correlations and then they use their programs until it stops working anymore

>>1275441
What the fuck is going to happen to that mouse?

>>1275494
Nuclear explosion.

>>1275494
the laser beam under the mouse becomes a death ray

>>1275441
How can you teach a human to profit off something so unpredictable? At least with a computer system you've got a lot more data going through it.

Because of symmetric information
>hedge fund AI makes money
>creates pattern into price that can be read by other AIs
>other AIs start doing the same
>other AIs start competing for liquidity around the same levels
>other more AIs notice collective price patterns and anticipate their moves until they are no longer profitable

And i'm being generous and assuming they will never encounter a black swan event that rekts them

>>1275450
>>1275475
>>1275493
>>1275494
>>1275513
>>1275549
>>1275578
>>1276385

Jesus christ, ok first of all, you don't need an AI in order to create a system which successfully trades stocks and other commodities, you just need a neural network. You dump the neural network with gigabytes of data of only successful trades, the neural networks learns from this data and then mimics the activity of the successful trades and starts making profitable trades. But in order to achieve such accuracy the neural network would need gigabytes if not terabytes of successful trades and of course it would need an enormous amount of computing power.

>>1276401
I have been working as a prop trader for 5 years kid, shut the fuck up

>>1276401
Ban all mass repliers

>>1276404
>I have been working as a prop trader for 5 years kid
>working as a prop trader for 5 years
>prop

AKA "I invested in cyprocurrency with my social benefits"

A bot cannot run an entire fund, no. It can run many parts, however, and it is technologically INEVITABLE that AI will eventually be able to turn more consistent profits than humans.

>>1276401
>including me in the reply
>I said basically the same thing

ok