Aidyia, a start-up in Hong Kong, are set to launch a US hedge fund that trades using artificial intelligence with no human intervention required. Aidyia’s system will use numerous forms of AI to predict price changes based on a multitude of information such as stock prices, trade volumes, media data, macro-economic data and corporate accounting. Historical testing has produced returns of about 29 per cent per year, with performance varying month to month. Real-time testing from November 2014 yielded similar results. Generally, the technology presented better results in the US market than in Hong Kong, which is attributed to Hong Kong’s higher trading fees and limited liquid stocks.
The use of artificial intelligence in trading is not exactly novel, though; Aidyia’s system aims to predict price movements over a longer period, contrary to other quantitative technologies that are used for short-term forecasts.
Aidyia’s co-founder and chief scientist, Ben Goertzel, has predicted that within 10 years, an array of institutional investors will be using funds managed by AI machines. Interestingly, Goertzel commented, ‘In the end it’s going to be viewed as irresponsible to entrust trillions of dollars to some emotional human being’.