Question about trading Sci-Fi Scenario
- Thread starter Ivano
- Start date
There is a meta level that may need to be fathomed.
In Microeconomic terms we are to a similar situation so called `Perfect Competition`, where every player is not going to do any profit. Markets can be (with a bit of stretch) be extended to this consumer analogy.
Given ChatGBT1 to ChatGBTn players, there will be a HedgeSpeculativeFund1 that will try to use human reasoning and change variables in the system(if they can) to create arbitrage, regulamentations, wyckoff bear/bull traps or whatever to dynamically reset the system, and have a new edge, for the dualistic reasons pointed out by Baron.
So the question become:
will traders(not investors) become obsolete with AI or will they play a different game?
EDIT: please consider that the question of me as OP is not about if ChatGBT will predict the direction, we have been implying yes will do (can be also a new AI tool in 10 years), just let's assume marketing direction is going to be predicted in the right way, for theoretical purposes.The problem is what happens `after` the market becomes super efficient
In Microeconomic terms we are to a similar situation so called `Perfect Competition`, where every player is not going to do any profit. Markets can be (with a bit of stretch) be extended to this consumer analogy.
Given ChatGBT1 to ChatGBTn players, there will be a HedgeSpeculativeFund1 that will try to use human reasoning and change variables in the system(if they can) to create arbitrage, regulamentations, wyckoff bear/bull traps or whatever to dynamically reset the system, and have a new edge, for the dualistic reasons pointed out by Baron.
So the question become:
will traders(not investors) become obsolete with AI or will they play a different game?
EDIT: please consider that the question of me as OP is not about if ChatGBT will predict the direction, we have been implying yes will do (can be also a new AI tool in 10 years), just let's assume marketing direction is going to be predicted in the right way, for theoretical purposes.The problem is what happens `after` the market becomes super efficient
Do you think institutions will benefit from GPU AI power to deliver the best algo or as market makers that will get a nifty bid ask spread?
A fundamentalist will keep investing in a good company, but relating to the charts signals on smaller timeframes, at the moment i would say a today 10-15 per cent of the whales know a sweet spot with good winning probabilities to trigger their algo with consistency and the cake of the profit will be then divided by a much larger percentage with AI from "next.com" era.
As you are familiar with the classics of investing Norbert, do you think price action volume mechanism will remain similar at this regard as was from the beginning of XX century or we are deviating from a certain degree of market efficiency? Thanks
I think that, the forum has, way more wolves in a sheep's clothing, than i expected and given your name and current geopolitical conditions, i will avoid anyone, who has even a slitghtest connection towards our enemies.
Yes, i am paranoid, but sorry, if i am wrong.
Current crop of Ai software processes via syntax not semantics. While sounding intelligent it has no understanding of what it is actually saying. Context is all about understanding and while it can include syntax, there is more to it;