Sunday, February 4, 2018

Will Artificial Intelligence Pricing Software Companies Market Markers?

By Stephanie Rogers


Some other exclusive feature believed by the owners of Mega droid is that it is the very first trading program to be released with broker protection or anti-broker mechanism. Their website trumpets that not any broker will probably recognize that you are dealing using Mega droid. The following article will discuss how powerful is forex mega droid with its new artificial intelligence pricing software companies.

To fill these gap financial firms have developed RoboAdvisors which uses false intelligence to help people determine how best to invest their money and develop their financial retirement portfolio based on their income, risk aversion, lifestyle, and time until retirement. On the surface, this sounds like a sound solution, but it's not without its own set of challenges - one of which I'd like to discuss here today.

You see, even if these false intelligent RoboAdvisors only deal with low net worth people, the sheer volume will add up to trillions of dollars of investment and annual growth. These RoboAdvisors AI machines will inadvertently become market makers as they invest in various companies. This new investment in bonds will lift some bonds that don't deserve to elevated, driving prices up into bubble territory.

Of course, these RoboAdvisors can then show how well they've done in hindsight by the increased market value of stocks and bonds that they've recommended. See the problem yet? Worse, less sophisticated low net worth investors have no idea what's happening and assume everything is peachy, even if these systems are developing bubbles in the market and distorting free-market balances needed for the markets to be successful.

Consider if you will the challenges with high-frequency trading and all the havoc those AI run algorithms have caused; flash crashes, stock market stop gaps, and torched corporate shareholder equity in minutes. Will RoboAdvisors give us more of the same? No, it will be a slow bubble build, but they will distort the market.

Why did all this happen? It started with over-regulation, do-gooder regulators, Wall Street lobbyists, and wire house fraudulent practices over time. The problem now is the overkill and overstepping the bounds of financial market regulations has caused future challenges. No, that's not unexpected either, we've watched government regulators do dumb things in the past and the law of unintended consequences results - that is all too common.

Amongst its (many) bold promises is that "... You do not require to find out anything related to the foreign exchange market or just how to trade it..." for the Megadroid robot to give back a handsome profit in a really short amount of time. It's cluttered up with some charts and testimonials that may pretty well be legitimate. Nevertheless, it seems to me that, unless of course, you are already someone with a good degree of know-how vis-a-vis foreign exchange trading, it is almost all but extremely hard to split the wheat from the chaff.

Yes, the big banks want a piece of the financial advisor sector, and they have lots of low net worth customers who they rake over the coal with fees, but killing the human kind of advisor for a RoboAdvisor isn't helping anyone, it's just killing more jobs and giving consumers fewer choices, all the while distorting markets - dumb. Meanwhile, as I pinned this article, I received an email news alert from our local county Economic Development Council - we lost 100 jobs in the category of financial advisors in the last quarter, and mind you that's only our little county with less than 1-million in population.




About the Author:



No comments: