![]() ![]() Not all quant firms are likely to face this issue, however. Yin Luo, head of quantitative research at New York data group Wolfe Research, predicts “a cat-and-mouse game” between parties spreading market-moving fake news and traders hoping to stay one step ahead. Powerful algorithms learn pattern recognition and natural language in ways that mimic the human brain, but they might still struggle with a genuine news report about fake news - for instance, a trustworthy news provider reporting the fake Pentagon explosion - “so might treat them as actual events and produce corresponding analytics”, added Hafez. “We see quants facing two hurdles: fake images that may fool a journalist, and reports of fake images that may fool the algorithm itself,” said Peter Hafez, chief data scientist at software company RavenPack, which uses AI to read large amounts of data for banks, hedge funds and other firms. That could provide a huge number of pitfalls for proprietary trading firms and hedge funds that for years have been investing heavily in algorithms that parse critical information, assess the language and sentiment within a source and use that data as a signal to trigger an automated trade. Traders’ particular concern is AI’s fast-developing ability to produce highly convincing images and stories, and in huge quantities. ![]() There's also no other images, videos or people posting as first hand witnesses. “AI, to be sure, opens the door to all manner of mischief in the information environment, which is becoming harder to manage,” said Doug Greenig, founder of hedge fund Florin Court Capital, which bets on longer-term trends in alternative markets rather than on very short-term market moves.Ĭonfident that this picture claiming to show an "explosion near the pentagon" is AI generated.Ĭheck out the frontage of the building, and the way the fence melds into the crowd barriers. While their computers have become more adept at sifting out false news stories and social media posts, executives at quantitative trading firms warn that machine-generated misinformation is a new frontier. Nevertheless, the incident underscores how AI-generated news and images could pose a big problem for hedge funds and ultrafast proprietary trading firms that use complex algorithms to comb vast amounts of news and social media for market-moving signals that they can then rapidly trade. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |