(Bloomberg) Hedge funds have been trying to teach computers to think like traders for years. Now, after many false dawns, an artificial intelligence technology called deep learning that loosely mimics the neurons in our brains is holding out promise for firms. WorldQuant is using it for small-scale trading. Man AHL may soon begin betting with it too. Winton and Two Sigma are also getting into the brain game.
The quant firms hope this A.I. — a kind of machine learning on steroids — will give them an edge in the escalating technological arms race in global finance. If they’re right, neural networks could help propel the transformation of finance, pitting machine against human and threatening old-school investing jobs.
