Machine Learning in Trading

How machine learning replaces traditional traders

Machine Learning in Trading

Trading has a big history. The beginning of it was very simple. Just exchange the goods and everybody was happy.

After inventing the money it even got better. There was a way to exchange goods in a more fair way.

And then humanity invented the economy, factories, companies. Companies went public and they started to trade with share stocks. You could own a share of the company. Interest in trading never was such huge.

And then humanity invented the internet and the ways to trade using the internet. That changed everything. The world became smaller. More trades were happening in a day than ever before. 

Then something very unusual happened. Humanity invented artificial intelligence (AI) and machine learning (ML). There was a chess world champion defeat by AI. Then AlphaGo project. And many more. And then they started using AI and ML in trading. We are still competing with them but I think in the very near future human involvement in everyday trading will be less and less. Because we won't be able to compete with the machines. Is it good or bad? Well, time will show us.

This is for sure that Artificial Intelligence and Machine Learning are the next big things in the history of humanity. There is skepticism about it. Some people believe that machines will start a war against us and we will be defeated (kind of a famous movie Terminator). 

I don't know what will be in the future but one thing is very clear, technology becomes more and more involved in our everyday lives and it is up to us how we use them. I believe that humanity will always be standing behind the technologies therefore it will be used only for our own good.

M.S.

Tbilisi,

December 28, 2020