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It is already being applied to finance. The problem is that a huge part of the market is based on emotion, so the AI makes it worse and not better. When the pr
by codexon 8y ago
It is already being applied to finance. The problem is that a huge part of the market is based on emotion, so the AI makes it worse and not better.
When the proverbial knife is dropping, you don't want to catch it while it is in free fall, it will likely plunge below "fair value" in a panic.
Quants know this and most have programmed/taught their systems to pull out of the market or short when volatility goes up. It is happening right now. Liquidity since February has shriveled up.