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 -
The Poet Is A Computer
'The potentiometers indicated the machine's lyrical capacitance was charged to the maximum...'- Stanislaw Lem, 1965.
Minister Wants To Convert Artificial Intelligences To Christianity
'Getting to his feet he crossed the waiting room to the Padre booth...'- Philip K. Dick, 1969.
Law Firms To Undergo 'Structural Collapse' Due Artificially Intelligent Systems
'I want my lawyer program.'- David Brin, 1990.
Scheherazade, An Open Story Generator
'How can you compete with an IBM heavy-duty logomatic analogue?'- JG Ballard, 1971.
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.
XM82 Personal Flamethrower Now In Development
'Skeletons in tatters. Burned by a flesh gun'
Graphene Cytobot - Cyborg Bacterial Spores May Help Astronauts
'[It] had not yet objected to being made over into a portion of an electronic system... '
Delightful Plen2 Mirror Robot - The Anti-Terminator
Time for fun, Will Robinson!
LiquiGlide Will Be Everywhere
'They poured the remnants of eggs out of their frictionless cups...'
US Customs Now Doing Facial Recognition At DC Airport
Are you who you say you are?
How Many Systems In That Galactic Empire Now?
'An Empire to twenty million stellar systems...'
Petman Robot Pushes Itself To The Limit
'There was the butler robot, hard at work, his copper face expressionless...'
Coleus LED 'Skylight' Dispenses Natural Sunlight Indoors
'How do they work it so that the sky is visible at every level of the city?'
UR3 Robot At Work On Copies Of Itself
'I don't mean that you should construct this ultra-microrobot with your own fingers, of course...'
3D Printing 'Terminator T-1000-Style'
Not quite 'a mimetic polyalloy...'
Bridge-MINDER Repair Robot
'The repair robots had started out on their rounds...'
Super Ball Bot Tensegrity Robot For Solar System Exploration
'Each leg in turn acted as a pivot around which the creature whirled its body...'
Norlin Shoe Drone Robot UAV In-Store Delivery Thing
'Robot-salesmen were everywhere, gesturing, pleading, shrilling.'
iSkin On-Body Touch Sensors
'Three rows of four colored dots appeared on the heel of my left hand.'
Britain To Build Spaceport, First In Europe
'The space-ports at the three great cities...'
MC10 Electronics Skin Stickers
'Every diaper... a fine copper wire…'
More SF in the News Stories
More Beyond Technovelgy science news stories