applications of Machine learning to finance ?

[hencre]

hi,

 

I have come across applications of machine learning to finance like

Portfolio, trading strategies and Consumer Credit risk prediction.

 

What are other applications of ML to finance ?

 

Thanks.

 

 

[krash661]

they all run algorithms.

and have track records that are not good in most cases,

most of these systems are a fail after certain periods of time,

they are statistical based.they are fine for x amount of time but fail when the environment that they are running changes(which is often).

as of this moment in time,

there's only maybe a couple of these systems that actually preform,

but as a person with no knowledge in this field ,you wouldn't know this

what you have mention are top tier, others fall under those( and there's only a couple more but i forgot them,

sorry..

 

 

 

edit-

 

wow, some one gave me a negative point for giving accurate info,

next time i just won't help.

funny.

Edited April 23, 2013 by krash661

[Enthalpy]

next time i just won't help.

We should survive it.

[krash661]

you say this because you have no clue how much money these systems lose,which leads to not surviving.

but it's ok because it does not effect my accounts.

[michel123456]

they all run algorithms.

and have track records that are not good in most cases,

most of these systems are a fail after certain periods of time,

they are statistical based.they are fine for x amount of time but fail when the environment that they are running changes(which is often).

as of this moment in time,

there's only maybe a couple of these systems that actually preform,

but as a person with no knowledge in this field ,you wouldn't know this

what you have mention are top tier, others fall under those( and there's only a couple more but i forgot them,

sorry..

 

 

 

edit-

 

wow, some one gave me a negative point for giving accurate info,

next time i just won't help.

funny.

 

 

Are you talking about this (as an example?)

 

 

A single hoax message sent via Twitter, the social media platform,

erased billions of value from US stock markets on Tuesday, drawing

attention to an electronic Trojan horse that hackers may manipulate with

apparent ease.

 

A picture may contain a thousand words, but a single fake tweet

can blow a hole in financial markets in seconds.

That was the costly lesson learned on Tuesday as a tweet

allegedly from the Associated Press went the global rounds just

before 1:08 p.m., reporting two explosions in the White House and

that President Barack Obama had been injured.

Within minutes AP personnel swung into damage control, attempted

to reassure the tweet was a hoax. But the damage was already done:

The bogus message sent the Dow Jones Industrial Average into a

tailspin, shaving 150 points, or about 1 percent, in the blink of

an eye.

The fake Tweet dealt a hammer blow to other markets as well: The

S&P 500, the NASDAQ and crude oil all dropped 1 percent. The

S&P 500's losses alone wiped out about $136.5 billion,

according to Reuters; the broader market lost nearly $200 billion

in value, USA Today reported. At the same time, the yield on the

10-year US Treasury note fell 4 basis points, and the CBOE

Volatility Index – the so-called ‘fear index’ – surged 10

percent.

The fallout from the fake tweet, which came as the nation

remains on edge following the attacks at the Boston Marathon, was

compounded by new technology that can ‘read’ social media messages

and place bets accordingly, experts say.

 

from this info.

Edited April 24, 2013 by michel123456

[krash661]

no what happened yesterday is irrelevant to what this conversation is about.

also about that, most of what sold off came back from that sell off within 10 minutes or so, after ap came out and said they were hacked.

 

what you are referring to are ECN's,

 

electronic communication network ,

they are for orders off the exchange, they create a lower cost and access to exchange's books on a specific instrument.

 

what this conversation is about are systems created by so called professionals to supposedly create an effort less strategy of trading and other categories mentioned , but they are statistical based and fail once the statics change, which is quit often.

 

and no, no example,

I'm a series 3 capital markets trader. i'm doing it at this second.

i tried to provide useful info about these systems,

9/10 these systems will blow out your account.