Machine Learning, Artificial Intelligence and Digital Assets
Machine Learning (ML) and Artificial Intelligence (AI) are impacting every aspect of our everyday lives from the phones in our pockets to the news we read and the cars we drive. How do these technologies impact trading in digital assets? Hehmeyer Trading + Investment's Brian Peterson presented at the August 2018 Voice of Blockchain conference where he went over proprietary trading, and how "prop" trading is similar and different from traditional asset management, as well as the implications for the strategies deployed.
His presentation looked at how ML and AI methodologies are being employed for crypto trading strategies, examined the most common use cases, including cases where simpler models would likely return similar results with lower model risk. He also examined the challenges of using backtests and more advanced market simulations for evaluating prospective trading strategies, how to use ML for trading strategy development, including measurement, feature design and simulation.
Throughout his commentary, he highlighted pitfalls and misconceptions between the public literature and the proprietary implementations in trading firms. He looked at which models and researche targets may be appropriate uses of ML in crypto trading, and provided a road map for choosing models for your own trading strategy development.
We invite you to watch his presentation.