More than any time in history, Artificial Intelligence (AI) is being used to trade financial markets. Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements.
The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets. Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.
The pivot of many hedge funds into AI and computer-dominated trading systems has been going on for years. Earlier this week, BlackRock, the world’s biggest asset manager, said it was revamping its stock investing business to further embracing computer trading. While that meant cutting its human workforce by some 40 portfolio managers and other employees, the company sees it as the logical next phase for the growth of its business. The man overseeing the changes to BlackRock’s equities operations, Mark Wiseman, told The New York Times that “the old way of people sitting in a room picking stocks, thinking they are smarter than the next guy — that does not work anymore.”
In other words, human intelligence is starting to lose out to Artificial Intelligence. The numbers show that investors are taking notice. Last year, $83 billion flowed out of discretionary hedge fund managers, while $13 billion flowed into quant hedge funds. Looked at in terms of the biggest fund firms, machines now own the top of the hedge fund world.
So, if the smartest hedge fund investors are making the move to Artificial Intelligence over human intelligence, shouldn’t retail investors consider following suit? The problem with that notion—at least until now—is that retail investors have not had access to AI on any sort of investment platform. Most investors also don’t have access to multimillion dollar technology budgets and rooms full of computers needed to do all the processing.
Until now, that is. With the launch of Tickeron’s new investment platform, retail investors can now use AI for a multitude of functions:
And much more. No longer is AI just confined to the biggest hedge funds in the world. It can now be accessed by everyday investors. Learn how on Tickeron.com.
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