Human beats AI in the stock market

Posted: October 11, 2017 in Uncategorized

There is a lot of talk of Terminator killing machines, but they are still things of the near future.

In finance alghorithm trading is diffused everywhere (close to 90% of trades are alghorithmic and machine trading is a big component of it).

And in finance, in the last 3 months, the human traders are beating the machines.

The resistance has started.

Jokes apart, this low volatility period is a killer for machines. The raw data and macro situation tells the machines that the situation is bad and we are going to recession…and the market goes up.

The machine cannot understand the manipulation and other influences as it goes by logic. The market is sometime logic, but more often driven by greed and fear.

Once you know the machines you know when to run and hide and when to fight and defeat them or simply ride their path of destruction.

As they say in the movie, the resistance has started. Not easy and few human managers will survive.

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