hedge fund ML - arcturus9/useful-link GitHub Wiki
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* flukes(운좋게 맞은) as patterns by López de Prado
* 사람이 하는 건 문제 정하기
Humane Define Problem, when AI Solve Problem
* 도구로 쓰기에 매우 유용함
“The hedge fund pros we surveyed are not turning everything over to algorithms,” Waksman added. “Instead, they’re using them to formulate investment ideas and build portfolios informed by data analysis that the human brain could never hope to accomplish.”
* 20%(2017.8) -> 54%(2018.8) 가 AI나 ML을 투자에 활용 중(by BarclayHedge poll)
Fifty-six percent of the survey’s respondents said they used AI or machine learning in their investment processes. Just 20 percent had said the same in a BarclayHedge poll last August.
* 퀀트 알고리즘이 하던일을 ML이 하고 있다
Much has been made of the rise of sophisticated quant funds, some of which use neural networks to generate trade indicators. Whereas in the past, algorithms were used to test and validate investment hypotheses produced by front-office teams, more recently they have evolved to use large unstructured data sets with which to identify themes/factors in the market. Trading teams then use these factors to hone their investment strategy.
The key difference is that whereas inputs were fed in to the trading code to create the trading signals, now quant managers are developing algorithms that use machine learning to think for themselves.
- AI를 투자프로세스에 활용하는데 더 투자하고 있음
A Greenwich Associates poll last month pointed to accelerated spending on artificial intelligence by fund managers, with 56 percent of its respondents planning to increase the integration of AI into their investment processes. A year before, the world’s largest asset manager, BlackRock, announced a pivot to big data and artificial intelligence.
- 43는 의사결정 프로세스에서 AI와 ML 기술에 의존하고 있음
On average, AI users surveyed by BarclayHedge said 43 percent of their decision-making process currently relied on machine learning and artificial intelligence techniques.
- 37%는 5년전부터, 27%는 1년 전에 AI를 응용하기 시작함
While 37 percent of the respondents using AI said they first adopted it more than five years ago, the second-highest proportion – 27 percent – have only begun implementing machine learning and artificial intelligence techniques within the last year.
- 반이상 AI/ML 사용중 / 3분의2가 아이디어와 포트 최적화에 활용 / 4분의 1일 execute에 사용 / 반이상 3년 이상, 3분의1이 5년이상 사용중
More than half of respondents say they use AI/ML to inform investment decisions.
Two-thirds say they use AI/ML to generate trading ideas and optimize portfolios.
Just over a quarter use automation to execute trades.
Well over half have used AI for three or more years, and a third have used the technology for five-plus years.
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AI, the future of investment management?(2018. 7.)
https://www.asiaasset.com/aam/2018-07/201807-ai.aspx
Tang Xiaodong, former chief executive officer of ChinaAMC, noted that AI does not suffer from the same behavioural issues that investors do. Eric Chang, senior director of Microsoft Research Asia, said the practically unlimited memory of machines give them an edge over humans in solving many problems.
Another important point to note in looking at AI is that it is not a race between humans and machines, it is going to be a collaboration. That said, we need to match and stay ahead of the pace of change to meet client expectations. We want the smartest machines working for us, and our best chance of building them faster is to work with the best in AI.So what can investment professionals today take from all this?
Investors will enjoy the benefit of AI-powered “assisted investing” much like drivers today enjoy “assisted driving” on the road to the moment when self-driving cars can be trusted. This may be an oversimplification, but I believe portfolio managers will have longer careers than analysts, and investors in liquid markets will enjoy the benefits of AI sooner.
And obviously, the more we improve our investment skills, the harder it will be and the longer it will take for machines to catch us. As Li Hongyu, senior director at ZhongAn Technology, said at the conference: “Your destiny is in your hands. -
The Big Problems with Machine Learning Algorithms in Finance https://algorithmxlab.com/blog/2018/10/10/the-big-problems-with-machine-learning-algorithms-in-finance/
“Machine learning algorithms will always identify a pattern, even if there is none. In other words, the algorithms can view flukes as patterns and hence are likely to identify false strategies.
It takes a deep knowledge of the markets to apply machine learning successfully to financial series,” said López de Prado. -
Data Scientist for Hedge Fund (GQR Global Markets) 21 Aug
https://www.glassdoor.com/job-listing/data-scientist-for-hedge-fund-gqr-global-markets-JV_IC1132348_KO0,29_KE30,48.htm?jl=2796302410&ctt=1553158051108 -
How A.I. Traders Will Dominate Hedge Fund Industry | Marshall Chang (Youtube, 2018. 10. 5)
https://www.youtube.com/watch?v=lzaBbQKUtAA
Humane Define Problem, when AI Solve Problem -
More than half of hedge funds now using AI technology (July 19, 2018)
Hedge funds are using AI and machine learning for investment decisions, but only a quarter are using it for trade execution.
https://www.thetradenews.com/half-hedge-funds-now-using-ai-technology/
Fifty-eight percent of hedge funds are now claiming it has been used for more than three years.
...
The survey concludes that most of the hedge fund managers BarclayHedge spoke with about AI technology are using the advanced algorithms and human judgement to deliver the smarter investment decisions.
“The hedge fund pros we surveyed are not turning everything over to algorithms,” Waksman added. “Instead, they’re using them to formulate investment ideas and build portfolios informed by data analysis that the human brain could never hope to accomplish.” -
Does artificial intelligence represent the next frontier in hedge fund investing? (2018. 8. 31)
https://knect365.com/hedge-funds/article/e6dad7d3-6ffb-42cb-8092-be2df0b7fb58/does-artificial-intelligence-represent-the-next-frontier-in-hedge-fund-investing -
Is there any hedge fund using machine learning based algorithms for trading? (Dec 18, 2015)
https://www.quora.com/Is-there-any-hedge-fund-using-machine-learning-based-algorithms-for-trading -
More Hedge Funds Using AI, Machine Learning (Institutional investor, 2018. 6. 19)
https://www.institutionalinvestor.com/article/b194hm1kjbvd37/More-Hedge-Funds-Using-AI-Machine-Learning -
Majority of Hedge Fund Pros Use AI/Machine Learning in Investment Strategies (Jul 18, 2018)
https://www.barclayhedge.com/majority-of-hedge-fund-pros-use-ai-machine-learning-in-investment-strategies/ -
How hedge funds are using AI and machine learning (2018. 3. 7)
https://www.computerworlduk.com/galleries/data/how-hedge-funds-are-using-ai-machine-learning-3672971/
at Man Group - a London-based hedge fund - "by 2015 artificial intelligence was contributing roughly half the profits in one of Man's biggest funds, the AHL Dimension Programme that now manages $5.1 billion, even though AI had control over only a small proportion of overall assets," as reported by Bloomberg. -
12 top AI professionals to know in hedge funds
https://news.efinancialcareers.com/cn-en/304983/top-ai-machine-learning-hedge-funds -
Improving Factor-Based Quantitative Investing by Forecasting Company Fundamentals (John Alberg , NIPS 2018)
https://arxiv.org/pdf/1711.04837.pdf -
LEVERAGING MACHINE LEARNING STRATEGIES FOR HEDGE FUND GAINS (2018. 10. 18)
https://www.analyticsinsight.net/leveraging-machine-learning-strategies-for-hedge-fund-gains/ -
AI Hedge Fund Is Said to Liquidate After Less Than Two Years (2018. 9. 7)
https://www.bloomberg.com/news/articles/2018-09-07/ai-hedge-fund-sentient-is-said-to-shut-after-less-than-two-years
Sentient Investment Management is notifying investors of plans to liquidate the hedge fund it started in late 2016, according to people with knowledge of the situation. The fund managed less than $100 million and hasn’t made money this year after gaining 4 percent in 2017, one of the people said. -
The Big Problem With Machine Learning Algorithms (2018. 10. 9)
https://www.bloomberg.com/news/articles/2018-10-09/the-big-problem-with-machine-learning-algorithms
“They’re coming with a mindset that we’re going to conquer the world with big data,” Koulajian says. In finance, though, the market regime is not static, and markets aren’t closed systems like a chess game. “You can have one little pin drop that can basically make you lose over 20 years of returns,” he says.
“My dog can recognize faces,” he says. “My teenage daughter speaks three languages. I would not entrust my savings to either of them.” -
Does artificial intelligence represent the next frontier in hedge fund investing?
https://knect365.com/hedge-funds/article/e6dad7d3-6ffb-42cb-8092-be2df0b7fb58/does-artificial-intelligence-represent-the-next-frontier-in-hedge-fund-investing
In turn, this will free up managers to hone their investment strategies and build investment solutions that more closely match investors' needs. -
jpmorgans-new-guide-to-machine-learning-in-algorithmic-trading
https://news.efinancialcareers.com/nl-en/329751/jpmorgans-new-guide-to-machine-learning-in-algorithmic-trading -
machine-learning-and-big-data-j-p-morgan
https://news.efinancialcareers.com/uk-en/285249/machine-learning-and-big-data-j-p-morgan -
RANKED: The 10 biggest hedge funds in the US(2017)
https://www.businessinsider.com/ranked-the-10-biggest-hedge-funds-in-the-us-2018-5#4-jpmorgan-asset-management-477-billion-aum-7
https://www.businessinsider.com/here-are-the-11-top-dogss-of-the-hedge-fund-industry-2017-6#1-bridgewater-associates-1222-billion-11
https://www.businessinsider.com/ranked-the-10-biggest-hedge-funds-in-the-us-2018-5#1-bridgewater-associates-12470-billion-aum-10
https://www.businessinsider.com/the-top-10-hedge-funds-of-2011-2011-5#2-jp-morgan-asset-management-new-york-ny-2
https://www.businessinsider.com/the-biggest-hedge-funds-in-the-us-2010-10
*World’s largest hedge fund to replace managers with artificial intelligence
https://www.theguardian.com/technology/2016/dec/22/bridgewater-associates-ai-artificial-intelligence-management
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AI Hedge Fund: Bridgewater Using AI to Increase Profits and Productivity
https://iknowfirst.com/rsar-ai-hedge-fund-bridgewater-using-ai-to-increase-profits-and-productivity -
Bridgewater Clarifies Its Artificial Intelligence Strategy
https://www.valuewalk.com/2015/03/bridgewater-artificial-intelligence-2/ -
Billionaire Ray Dalio: A.I. is widening the wealth gap, ‘national emergency should be declared’
https://www.cnbc.com/2018/07/06/bridgewaters-dalio-posts-on-ai-wealth-gap-capitalism-on-facebook.html -
Billionaire Ray Dalio: A.I. is widening the wealth gap, ‘national emergency should be declared’
https://techcrunch.com/2017/09/30/artificial-intelligence-is-about-the-people-not-the-machines/