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How are the criterion chosen though? Something I learned from working alongside data scientists and financial analysts doing algo trading is that you can almos
by atomicnumber3 1y ago
How are the criterion chosen though?
Something I learned from working alongside data scientists and financial analysts doing algo trading is that you can almost always find great fits for your criteria, nobody ever worries about that. Its coming up with the criteria that's what everyone frets over, and even more than that, you need to beat other people at doing so - just being good or event great isn't enough. Your profit is the delta between where you are compared to all the other sharks in your pool. So LLMs are useless there, getting token predicted answers is just going to get you the same as everyone else, which means zero alpha.
So - I dunno about uniquely human? But there's definitely something here where, short of AGI, there's always going to need to be someone sitting down and actually beating the market (whatever that metaphor means for your industry or use case).
- fwip 1y agoFinance is sort of a unique beast in that the field is inherently negative-sum. The profits you take home are always going to be profits somebody else isn't getting. If you're doing like, real work, solving problems in your domain actually adds value, and so the profits you get are from the value you provide.
- kaashif 1y agoIf you're algo trading then yes, which is what the person you're replying to is talking about. But "finance" is very broad and covers very real and valuable work like making loans and insurance - be careful not to be too broad in your condemnation.
- fwip 1y agoYou're right, I spoke too broadly there.
- atomicnumber3 1y agoThis is an overly simplistic view of algo trading. It ignores things like market services, the very real value of liquidity, and so on. Also ignores capital gains - and small market moves are the very mechanism by which capital formation happens.
- fwip 1y agoStock is only one part of capital formation, and of that, algorithmic trading is only incidental to the sale of those stocks. Put another way - capital was accrued long before we had a stock market, and even longer before we had computers deciding which stocks to sell or buy.