This is funny, but just to be clear, the firms that are doing automated trading have been using ML for decades and have high powered computers with custom algorithms extremely close to trading centers (often inside them) to get the lowest latency possible.
No one who does not wear their pants on their head uses an LLM to make trades. An LLM is just a next word fragment guesser with a bunch of heuristics and tools attached, so it won’t be good at all for something that specialized.
What’s most annoying to me about the fisasco is that things people used to be okay with like ML that have always been lumped in with the term AI are now getting hate because they’re “AI”.
What’s worse is that management conflates the two all the time, and whenever i give the outputs of my own ML algorithm, they think that it’s an LLM output. and then they ask me to just ask chat gpt to do any damn thing that i would usually do myself, or feed into my ml to predict.
ML and other algorithms have also been used by firms who do none automatic trading like since before 2000 too
but they just use it as part of the decision making process
last time i looked, around like 2020, all the fully automated headfunds that said they will be use ai for trading, failed and did not beat the market tho
(high frequency trading is not what i mean tho, i think high frequency trading is what you mean)
This is funny, but just to be clear, the firms that are doing automated trading have been using ML for decades and have high powered computers with custom algorithms extremely close to trading centers (often inside them) to get the lowest latency possible.
No one who does not wear their pants on their head uses an LLM to make trades. An LLM is just a next word fragment guesser with a bunch of heuristics and tools attached, so it won’t be good at all for something that specialized.
I hate that ai just means llm now. ML can actually be useful to make predictions based on past trends. And it’s not nearly as power hungry
What’s most annoying to me about the fisasco is that things people used to be okay with like ML that have always been lumped in with the term AI are now getting hate because they’re “AI”.
What’s worse is that management conflates the two all the time, and whenever i give the outputs of my own ML algorithm, they think that it’s an LLM output. and then they ask me to just ask chat gpt to do any damn thing that i would usually do myself, or feed into my ml to predict.
LLMs are great for interactive NPCs in video games. They are bad at basically everything else.
ML and other algorithms have also been used by firms who do none automatic trading like since before 2000 too
but they just use it as part of the decision making process
last time i looked, around like 2020, all the fully automated headfunds that said they will be use ai for trading, failed and did not beat the market tho
(high frequency trading is not what i mean tho, i think high frequency trading is what you mean)
LMMs are better than other methods at context and nuance for sentiment analysis. They can legitimately form part of trade generation.