Machine Learning and Artificial Intelligence
In recent years, a veritable hype has broken out around the topic of artificial intelligence (AI). Due to significant performance improvements in computers (GPU processing) and methodological developments such as deep learning and reinforcement learning, this hype is certainly justified. Especially in the application to trading and investment strategies, the progress is enormous.
Machine Learning in Trading and Investment
Reinforcement Learning,
as a special field of machine learning and artificial intelligence, is a breakthrough technology for the learning of trading and investment strategies.
Different time regimes exist for the various use cases: Strategies based on Reinforcement Learning can be developed for longer-term investment horizons, intraday and even as well for real-time and HFT use. The AI learns a trading strategy directly from the data on the basis of simulated order executions and within the same step it is optimizing the costs. Quantefakt has developed its own AI library for these purposes, which results in significant outperformance of many markets. Market timing can actually be learned.
Another use case is the reduction of implementation shortfall and market impact. The Reinforcement Learner is able to learn an optimal ratio of time to execute the order versus execution price depending on the respective order size.
Nevertheless, whether you are already developing a concrete AI-based trading strategy or if you just want to analyze whether machine learning is suitable for your use case, Quantefakt has the appropriate competencies.
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