Artificial intelligence & machine learning
AI & ML in the financial markets
Humans often make decision with emotional bias which affects their overall strategy and performance. Separating out the emotion from investment and trading is difficult and therefore computer algorithms and models can make decisions without any emotions and can execute much faster as compared to a human.
Machine Learning is a branch of Artificial Intelligence which offers a number of important advantages over traditional algorithmic programs. Machine Learning models can learn patterns hidden in the data that can be impossible for humans to understand. The process can accelerate the search for effective algorithmic trading strategies by automating what is often a tedious, manual process. It also increases the number of markets an individual can monitor and respond to. Most importantly, they offer the ability to move from finding associations based on historical data to identifying and adapting to trends as they develop.