The use of Artificial Intelligence as an investing tool was once reserved for the top of the Wall Street food chain. Only the largest commercial traders, financial institutions, hedge funds, and others with the necessary resources could implement an AI-based trading strategy into their portfolios.
But as Bob Dylan said, ‘the times they are a-changin’. Today you’d be hard-pressed to find any financial institution, regardless of size or capital, that isn’t utilizing AI in some way to inform how they trade. AI’s influence over Wall Street has grown exponentially in the last decade, and as that’s happened, the barrier to entry for individual traders to benefit from the power of AI has been lowered.
The Institutional Arms Race
Artificial intelligence first gained prominence among the Wall Street elite in the 1980’s, when hedge funds like Renaissance Technologies began to incorporate it into their trading strategies. But as the application of this technology has improved through the use of more powerful servers and, more recently, the emergence of the cloud to train the AI on big global market data, so have the results and the amount of investment money flowing into quant funds that …
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