Tag: artificial intelligence

artificial intelligence

P&L Talk Series with Ensemble Capital’s Damien Loh

At the Profit & Loss conference in Singapore Damien Loh, CIO of Ensemble Capital, talked how AI tools can be applied to FX trading.

Profit & Loss: Artificial intelligence has become a big buzzword in finance. What does this term mean to you and how are you actually using this technology?

Damien Loh: So it’s a very buzzy term, and that’s why we make a distinction by saying that we’re using deep learning. AI can just be a general definition where any process that requires thinking is automated in some way and there are people using the AI catchall buzzword that just have a linear regression in an excel spreadsheet.. And you can tenuously call that AI, but it’s nothing really game changing.

Why Platforms Need to Offer More Than Just Liquidity

In an environment in which liquidity has become increasingly commoditised, how do FX trading platforms offering access to this liquidity differentiate themselves?

This was the question put to Jill Sigelbaum, head of FXall, Refinitiv, during a recent video interview with Profit & Loss.

Sigelbaum responded that providing transaction cost analysis (TCA) and pre-trade analytics tools are examples of ways that platforms can offer increased value to clients, but also highlighted a number of other services that are being developed.

“What really differentiates us, and I think how we move forward, is the pre-trade workflow, the artificial intelligence that we plan to use around analysing the post-trade data so that we can make suggestions to clients, automating the process as much as possible without actually trading for our clients,” she said.

In the FICC of it

It’s a bumper edition of In the FICC of it this week as Colin Lambert and Galen Stops prepare to head off to Forex Network Chicago 2018, with both giving previews of the main issues that they plan to tackle on the panel sessions that they are moderating.
The pair also discuss a report by the New York state Attorney General, which highlighted some major concerns about some of the crypto trading venues operating today. But the most interesting aspect of this story is the response of one exchange that decided to hit back at the AG in rather spectacular fashion – Lambert and Stops highlight some of the shots fired on (where else?) Twitter.

A New Breed of FX Hedge Fund

There is a new breed of hedge funds that are using artificial intelligence (AI) tools to trade the currency markets. Galen Stops takes a look at a few of these emerging funds.

“AI has become a catch-all phrase, everybody and their grandma wants to use it now because it’s a buzzword,” says Damien Loh, the CIO at Ensemble Capital, a Singapore-based hedge fund.

With an academic background in computer science, Loh spent 15 years at JP Morgan before launching Ensemble Capital in 2017 alongside Atsuo Ogaki, the former head of FX at Nomura in Tokyo and 22-year veteran of JP Morgan.

AI-Driven Asset Manager Expands Product Suite

Asset Manager, qplum, has launched a multi-strategy AI managed futures program (QMAP) for qualified institutional clients.

QMAP aims to give investors access to a diversified investment strategy that trades across different geographies and asset classes. It trades futures such as fixed income, equity indices, FX, commodities and volatility. There is a drawdown control-based risk management in place.

The strategy is built using qplum’s proprietary, deep learning framework that already powers other portfolios offered by the firm Large amounts of market, economic and other structured data are used to train the models and the entire trading pipeline is fully systematic

Survey Highlights Hedge Fund AI Usage

Artificial intelligence (AI) and machine learning (ML) are reshaping the alternative investments landscape, but professional financial managers still make the most pivotal decisions, according to a new survey from BarclayHedge.

In a sample of 55 hedge funds that responded to the survey, 56% said they use AI/ML to inform investment decisions, with most of the firms that use these tools saying that they do so in order to generate trading ideas and optimise portfolios.

Well over half of the respondents, 58%, have used AI for three or more years, while 37% have used the technology for five-plus years.

Hedge fund managers were among the earliest adopters of advanced algorithms and artificial intelligence techniques, which helps explain why a plurality of survey respondents said they have been using AI/ML for more than five years.

AI in Trading: Human Ingenuity on Steroids

One of the key benefits of the use of artificial intelligence (AI) tools for trading is that it can massively enhance human capabilities, explains Andrej Rusakov, CEO of Data Capital Management.

“The way I see it is that AI can really put human ingenuity on steroids,” he says. “What I mean by that is that it really allows you to take way more data points into account and find structures in data sources that are impossible for the human eye to spot.”

Rather than displacing humans, Rusakov explains that this technology is most effective when it is deployed in tandem with a human understanding of how markets work. When building strategies, his firm uses this understanding of markets and then codifies and enhances them by using AI, and in particular machine learning, tools to find new patterns in different data sets.

Understanding the Limits of AI in Finance

Artificial intelligence (AI) and machine learning have become buzzwords in financial services, but while this technology can be applied in finance in numerous ways to improve returns, it also has some significant limitations that market participants should be aware of.

This was the message from speakers at the Profit & Loss Forex Network New York conference, on a panel discussion titled  “AI: Regular Quants with a Bigger Bazooka?”

“In my mind the biggest problem with machine learning in its application to finance is the problem of non-stationarity.

SmartStream Launches Innovation Team

SmartStream Technologies has launched a new innovation team tasked with creating solutions using artificial intelligence (AI), machine learning (ML) and blockchain technologies, in the areas of reconciliations, cash management, and fees and expense management.

“Highly skilled members of the team include mathematicians, applied data scientists, computer scientists and PhDs, who will focus on the deployment of AI/ML and blockchain models with financial institutions. This includes evaluating optimal AI/ML modelling, data interpolation, running tests, implementations and analysing how AI processes best work within the current product environment by monitoring achievements and optimisation of processes, to enable better business outcomes,” the firm says in a release issued today.

5 Big Questions Regarding the Future of AI in Finance

There is a lot of conversation around Artificial Intelligence (AI) among different participants in the institutional investing pyramid.

Investors are wondering if AI can get higher returns by extracting unexplored alphas or if it can reduce costs, and investment professionals are wondering how machine learning and AI will impact their businesses.

Right now there is a lot of exuberance, optimism, skepticism and fear around AI and the impact that it will have on financial markets. Here I explore five key questions that are important to ask regarding this technology and its role in finance.