YouTube Cofounder Steve Chen Launches Hedge Fund That Uses AI To Make Investment Decisions
- Thread starter dealmaker
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They've been around, so they'd have known pretty well trading is not 100% about science (it might improve their odds a bit, but to be the good or the best in this business, there's an art element to it, plus little bit luck.
chances are they wouldn't be able to execute trades...
chances are they wouldn't be able to execute trades...
Do you have fact based evidence?
Depends on what he/they do.
At least in Sweden, due to the passive investment wave and AI hype there's currently a big demand for "robot investors" that are just supposed to pick some assets for you to create a "well diversified portfolio" and rebalance it... no alpha required whatsoever. Heck, you can probably underperform for years and the client will be happy because "it's AI".
The problem with big computer run funds is that they may divide it up so there is closed circle of high profitability edges. And secondary open fund suitable for larger allocations that gets offered to public, where they earn on fees.
God knows how much computing power is used in secret warehouses around the world to scan for market edges that would be nearly impossible for humans to spot using pencil and paper.
God knows how much computing power is used in secret warehouses around the world to scan for market edges that would be nearly impossible for humans to spot using pencil and paper.
If I may expand on the above: There's quite a lot of completely unsubstantiated talk in financial news here about how investment robots (fixed the term) will supposedly revolutionize the investment industry. They (including journalists) don't realize that every corner of the market with decent liquidity has been searched extensively by incredibly well funded research teams already for the last 20 years, and that e.g. ETFs like SPY are already robots by definition. Meanwhile, (not necessarily for their case incorrect) people have given up trying to beat passive funds, so the situation is conductive to having people putting their money into something and not caring about what that is. S&P500 membership premium says hello, as do zero interest rates.
As if the ground-shaking A.I fund is the only fund of such nature in the world, while there are tons of competition in the other side of the trade, with the same or even better tech.
And when it comes to the journalists and news about investing... (smile/small laugh)
Those folks for sure, knows & understand, that which they write about.
The office must be in the cave or something ,. 30 years too late folks.
Bigger things to worry about, if the quantum pcs brings true A.I into the reality and the thing starts to reproduce itself exponentially, potentially being able to hide enough of the root code into any device on this planet, then, basically zero chances left to eradicate it from the web, >unless< we clean all of devices, yet try to explain such things to some farmer in Pakistan with his hard drive full of favorite porn.
@maxinger thinks that anyone who does not do intraday trend trading is not doing it right, so obviously Simons would be an amateur in his book
