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.
Zap Space Debris With Telescope Laser On ISS
'... their lasers vaporized the smaller satellites...'
Moran Cerf, When Will We Get Neuro Tech For Ourselves?
If brainwave-sensing consumer products tickle your fancy...
Velkess Energy Storage System (It's A Flexible Flywheel!)
'The kinetic man unjacked Lalji’s kink-springs from the winding treadmills...'
Performance Enhancing Drugs - In Gaming?
'A faint smell of rachag stimulant wafted down the table.'
Automated Treadmill Adjusts To Your Pace
'The auto-treadmill's bumps and gullies matched...'
Mr. Anderton, Beware This Long-Range Iris Scanner
Try keeping your eyes shut, Mr. Anderton.
Mini Statues Of You From 3D Images
'...A three-dimensional simulacrum of himself six inches high took form.'
'Forever' Camera Powered By Its Own Images
'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...'
Robot Chef Makes Thousands Of Dinners
'I got one of those new electronic cameras... and I could construct this one to do it exactly right down to the thousandth of a second.'
Revault Wearable Private Cloud Is Too Vaporous
'A man or woman could carry AIs or complete planetary dataspheres...'
Spacex Sticks Landing! But Neglects Lateral Forces
Lumo Projector Turns Kids Rooms Into Bradbury's Veldt
'The walls began to purr and recede... and presently an African veldt appeared...'
Ground Control Space Beer
Ninkasi Brewing Co. has its own space program.
Google Wants To Give Orders To Robot Armies
Or maybe they aren't bent on world domination.
Gestures Control Spider Robot Army
'What do you think - four spiders, one per floor?'
Hologram Protest World's First
'Their bodies were in their dwelling cells, but their telucid images filled the hall.'
More SF in the News Stories
More Beyond Technovelgy science news stories