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)

Via Bloomberg.com.

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 |

Would you like to contribute a story tip? It's easy:
Get the URL of the story, and the related sf author, and add it here.

Comment/Join discussion ( 0 )

Related News Stories - (" Artificial Intelligence ")

The Next (Computer) Rembrandt
A new, Old Master.

IBM Tone Analyzer - Like HAL 9000
'I can tell from your voice harmonics...' - Arthur C. Clarke, 1968.

Computers Learning To Read Lips
No, it's safe, HAL can't read your lips now...

Tay, Microsoft Chatbot, Offline To 'Absorb It All'
'If you spoke English, results might be whimsical...'- Robert Heinlein, 1966.

 

Google
  Web TechNovelgy.com   

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.

 

 

 

 

 

Current News

Turing's Nose - Was That Scent Real Or Artificial?
'Rippling arpeggios of thyme and lavender...'

Xian'er Buddhist Monk Robot
'Getting to his feet he crossed the waiting room to the Padre booth...'

AnBot Security Robot WILL Tase You, Bro
Michael Crichton right again.

Hover Camera - Unfold Drone, Shoot Selfie
'He set his camera to follow him...'

A Baker's Dozen Of Autonomous Car-Related Revolutions
'Old people began to cross the continent in their own cars.'

Would You Date A Robot? 1 in 4 Say 'Yes'!
'My hands touched a great keyboard, whence, perfect through long practice, I could direct lifelike motion.'

Sophia, The Personable Robot From Hanson Robotics.
'The de luxe model... has fifty different facial expressions...'

Swimming, Slithering Snake Robot
John Connor, how do you feel about swimming snakes?

The First 'Drone Cafe' Started By Dutch Students
'It was a smooth ovoid floating a few inches from the floor...'

Astronaut Tim Peake Completes Space Marathon
'Joe got out the gravity-simulator harnesses...'

Aerojet Rocketdyne 'Ion Drive' To Reach The Asteroids? (Update!)
'It has its own ion drive...'

Beatie Wolfe's Album Is A Deck Of NFC Cards
'The greater trumps ready to step right out through those glistening surfaces.'

Is Social Media Saving Space Travel?
'Officially, they were delighted to share their experiences with the public.'

iBubble Scuba Drone Follower
'Hovered behind him like a large tame bee...'

Ironing Robot May Fulfill Russian Science Fiction Dreams
Sometimes, the old inventions are the best.

Organic Photonic Skin Display
'A strip of readout skin on my wrist...'

More SF in the News Stories

More Beyond Technovelgy science news stories

Home | Glossary | Invention Timeline | Category | New | Contact Us | FAQ | Advertise |
Technovelgy.com - where science meets fiction™

Copyright© Technovelgy LLC; all rights reserved.