November 27, 2006 at 14:54The birth of AI will happen in the stock market
Renowned inventor and futurologist Ray Kurzweil believes that the future of trading does not belong to people at all , but to artificial intelligence.
Ray Kurzweil is a programming genius and visionary, known for his outstanding work in the field of character recognition (OCR), pattern recognition, speech synthesis, and the promotion of transhumanism . Bill Gates himself once called him the best futurist living.
As you know, the basis of transhumanism is the assumption that a person is notis the last link in evolution, which means that it can improve to infinity, turning into a “superman”. Like all transhumanists, Ray Kurzweil promotes the development of new technologies in the field of nanotechnology, biotechnology, information technology, artificial intelligence, loading consciousness into computer memory, cryonics. He himself daily takes more than 150 vitamins, antioxidants and other chemicals that prolong biological life.
This little background is necessary in order to understand Ray Kurzweil's forecasting logic. Since, in his opinion, in the future the computing power of computers will exceed the capabilities of the human brain, it is quite natural that artificial intelligence will become an integral part of the economic infrastructure. In the stock market, computers will analyze billions of transactions in real time and instantly identify patterns that are not visible to the human eye.
This forecast by Ray Kurzweil, unlike many others, is quite real and believable. At least, believe in it reputable investors who have invested in a new startup called Kurzweil FatKat Inc .
Computer programs have long been successfully used in trading. They are widely used to automate the routine of the trader, as well as for technical analysis. In the last five years, a new generation of software for technical analysis has appeared. Next-generation trading programs, such as the Trading Platform by Apama Algorithmic, allow traders to launch sophisticated strategies at intraday trading - just a few clicks are needed. Programs respond to market movements instantly and are able to complete a transaction in 20 milliseconds - five times faster than the fastest trader can click on a button.
Thanks to modern software, today a single trader has the same capabilities that five years ago a small trading company with a dozen employees and a capital of $ 500 thousand - such a comparison is given by stock market experts.
According to analysts, about a third of all transactions in the US stock market last year were made not by people, but by computer programs. Over the past ten years, trading volume on the NYSE has grown from $ 346 million to $ 1.6 billion. The competition of traders in the stock market is gradually turning into a competition of programmers.
According to Ray Kurzweil, progress will not stop there. Perhaps the most complex AI programs are not even created in the military department, but in the stock market, where they are really capable of recouping themselves. Already, neural networks and genetic algorithms are being applied here with might and main, which simulate the processes occurring in the human brain. What will happen next?
Ray Kurzweil is a programming genius and visionary, known for his outstanding work in the field of character recognition (OCR), pattern recognition, speech synthesis, and the promotion of transhumanism . Bill Gates himself once called him the best futurist living.
As you know, the basis of transhumanism is the assumption that a person is notis the last link in evolution, which means that it can improve to infinity, turning into a “superman”. Like all transhumanists, Ray Kurzweil promotes the development of new technologies in the field of nanotechnology, biotechnology, information technology, artificial intelligence, loading consciousness into computer memory, cryonics. He himself daily takes more than 150 vitamins, antioxidants and other chemicals that prolong biological life.
This little background is necessary in order to understand Ray Kurzweil's forecasting logic. Since, in his opinion, in the future the computing power of computers will exceed the capabilities of the human brain, it is quite natural that artificial intelligence will become an integral part of the economic infrastructure. In the stock market, computers will analyze billions of transactions in real time and instantly identify patterns that are not visible to the human eye.
This forecast by Ray Kurzweil, unlike many others, is quite real and believable. At least, believe in it reputable investors who have invested in a new startup called Kurzweil FatKat Inc .
Computer programs have long been successfully used in trading. They are widely used to automate the routine of the trader, as well as for technical analysis. In the last five years, a new generation of software for technical analysis has appeared. Next-generation trading programs, such as the Trading Platform by Apama Algorithmic, allow traders to launch sophisticated strategies at intraday trading - just a few clicks are needed. Programs respond to market movements instantly and are able to complete a transaction in 20 milliseconds - five times faster than the fastest trader can click on a button.
Thanks to modern software, today a single trader has the same capabilities that five years ago a small trading company with a dozen employees and a capital of $ 500 thousand - such a comparison is given by stock market experts.
According to analysts, about a third of all transactions in the US stock market last year were made not by people, but by computer programs. Over the past ten years, trading volume on the NYSE has grown from $ 346 million to $ 1.6 billion. The competition of traders in the stock market is gradually turning into a competition of programmers.
According to Ray Kurzweil, progress will not stop there. Perhaps the most complex AI programs are not even created in the military department, but in the stock market, where they are really capable of recouping themselves. Already, neural networks and genetic algorithms are being applied here with might and main, which simulate the processes occurring in the human brain. What will happen next?