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 ")

Would You Converse With Your Autonomous Car?
What's that, Artoo? I shouldn't be driving right now?

Robots That 'Feel' Real Emotions
How do you feel about emotional robots and computers? No, really, you should share.

Amazon's Alexa To Recognize Emotions
Oh, Hal understood their emotions, all right.

Google Working On A 'Cutoff Switch' For AI
'A remote control, so you can pull the plug on Hal whenever you want to.' - Arthur C. Clarke, 1982.

 

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

Sketching Robots May Displace Starving Artists
Jeez, robots, leave us with something.

Three Clues To Limb Regeneration
'Forcing the energy transfer which allowed him to regrow his lost fingers...'

Soft Caterpillar Robot Powered By Light
'the spread-out "puddle" shape she used for soaking up sun...'

Converting Low Temp Waste Heat To Electricity
'Our civilisation was dying in its own waste heat.'

Flex Robot Surgeon - Let's Hope You're Sedated
There are other insertion points, right, Neo?

Liquid Metal Terminator Development Hums Right Along
More research is needed - check!

Kiwi Dominos Drone Pizza Delivery
If you can deliver diapers, you can deliver pizzas.

MIT Robot Helps Out In Delivery Room
Oooee nooomaa oooee. And you thought today's doctors were hard to understand.

Self-Healing Textiles! Say Goodbye To Torn Jeans
'The constant renewal of the fibers, repairing any faults...'

Fleets Of Ford Autonomous Cars In 5 Years
'He urgently addressed the vehicle's AI."Can't we go any faster?'

Electric Head Patch Helps PTSD Patients
'Don't confuse this with the little ten amp neurosis models.'

MEDi Robot Calms The Nervous Patient
'Specially programmed stabilizing surrogate devices.'

NASA's Interplanetary Internet DTN
'This was the center of Interplanetary Communications.'

Superior Morals For Autonomous Cars
Exemplars of military and civic virtue.

Housekeeping Robots Easy To Imagine, Tough To Make
George Jetson had it easy.

Augmented Reality On Construction Sites
'To Nigel Bishop, the walls had become blue glass...'

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.