The Truth Nobody Wants to Tell You About #ai for Trading
▻https://hackernoon.com/https-medium-com-supernova-the-truth-nobody-wants-to-tell-you-about-ai-f
Holy grail or poisoned chalice?Are you positive about your backtest results?TL;DR Nobody has cracked it. Period.Machine Learning has always fueled the fantasies of Wall Street. After all, AI detects faces, drives cars, beats the World Champions at Chess, Go, and now Starcraft 2. Its application to trading seems natural, doesn’t it?Totally! What if we could throw a treasure trove of data at an AI and let it predict future market prices?Don’t bother with that…Prices cannot be predicted, they are mostly random. They are not predictable on average, only on occasions but nobody knows when.The era of the magic ‘black box’ automating alpha hasn’t come yet.Nobody has cracked automated trading using Machine Learning-based predictions.That’s right. Sorry to disappoint. Nobody knows whether their bot will (...)
#algorithmic-trading #crypto-trading #ai-for-trading #ai-crypto-trading