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)
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 |
you like to contribute a story tip?
Get the URL of the story, and the related sf author, and add
Comment/Join discussion ( 0 )
Related News Stories -
Google Zero-Shot Translation Gives Star Trek Fans Hope
"This is your opponent!" - Gene Roddenberry, 1967.
AI Lip Reading Better Than Human, Like HAL 9000
Nothing to worry about, until computers control most vital systems.
When Did Chess Computers Seem Unbeatable?
'A human simply can't beat a robotic expert.' Clifford Simak, 1951.
Robots And AIs Will Replace Humans At 7 Percent Of U.S. Jobs
'And Mike took on endless new jobs.' - Robert Heinlein,
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.
Life In Detroit's 'Agrihood' - The First In The U.S.
'countless tiny brown circles in the green fields ...occasional ruins of ancient cities...'
Artificial 'Hairs' To Enhance Senses Of Robots
'Migul had extended from each of the fingertips an inch-long filament of wire...'
The Point Of View Of An Autonomous Car
'It is safe to say that the new model almost revolutionized America in more ways than one...'
You Can't Lose The Travelmate Autonomous Suitcase - It Follows You
'...follow him as faithfully as a well-trained hound.'
ibotn Toddler-Care Mini-Robot
'She's not like a machine. She's like a person. A living person.'
Nuclear Batteries Based On Diamonds Last Millennia
'they just package it and ship it around to wherever people want it...'
Eighth Sense Emotion-Responsive Cloak
'This sensitivity to mood explains the real popularity of bio-fabrics...'
British Airways To Offer An Ingestible Sensor To Passengers
The modern way to get feedback from passengers.
Unique DNA To Foil Parts Counterfeiters
'... the only molecule, a unique protein amino acid, which could not be duplicated.'
MIT Researchers Predict The Future From Still Photos
'What I have in this camera is not a record of what you did just now but what will go on here in the next half hour...'
Mini Robot Uses 2 mm Surgical Tools
'... surgical tool - blades, tweezers, probes - so fine you could just see them with the naked eye.'
Childhood Dreams Of Space Realized! Space Junk Problem Solved!
'Give the noble daydreams a rest, you preachy rookie. Astronauts are wage slaves like everyone else!'
Writhing Robotic Tentacle Uses Laser To Chop Nuke Hardware
'... long, flexible, glittering tentacles... swinging and rattling about its strange body.'
LBNP Device Not Quite 'Artificial Gravity'
'Joe got out the gravity-simulator harnesses..'
China's XPNAV 1 To Use X-Ray Pulsars For Navigation
'For a hyperspace jump, you need at least four beacons for an accurate fix.'
Artificial Muscle Material Is Self-Healing, Super Stretchy
More SF in the News Stories
More Beyond Technovelgy science news stories