Do quants use machine learning?

Do quants use machine learning?

Machine learning (ML) or artificial intelligence is one of the greatest inventions of this century. 

Yann LeCun : Do quants use machine learning?

The previous AlphaGo defeated Ke Jie is a good example, I think it can be great if one day we can have an interview with Ke Jie Haha, the World No.1 Go player before.  

Who doesn’t want to enter the fields of technology and finance in the future?

I think it is necessary to learn and practice more in the field of ML. Not only it is an interesting technology, but also working knowledge of ML is required to stay relevant, due to rapid development of AI in today’s tech world.
ML algorithms can improve themselves through training by three main methods.

These also the three types of ML:
supervised learning, unsupervised learning, and reinforcement learning

I think reinforcement learning is my favorite, but I also accept the works of supervised learning and unsupervised learning. Supervised Learning needs high-quality data sets, to begin with, it requires a lot of human labor to label the data in order to make PC identifies completely machine-readable pattern. I think reinforcement learning is inspired by the people collect data in reality, it uses a trial-and-error method to improve itself. It aims to provide the best solution to get the greatest reward. This algorithm a lot like human psychology.

Encouraging favorable outputs and discouraging unfavorable outputs. 

Who doesn’t want to engage in some area related to quantitative analysis?

Or to work in asset management companies, technology companies, VC and PE, industries ripe for ML innovation?  ML also has a great application in financial services. ML predictive models can identify and limit risk exposures for banks and helps to identify cyber threats, track and record fraudulent customer behavior, and better predict the risk of new products. It also related to credit scoring and loan analysis. 

In conclusion, for technology companies, based on big data, ML is also better able to recommend personalized products and services to consumers based on their individual preferences. Therefore, I want to learn and practice more related to this technology.

Back To News

Do quants use machine learning?