While still some professionals and big banks are using the over-passed traditional trading techniques, many smart hedge funds and big institutions finally decided to switch towards AI based HF Trading technologies and focus on machine learning tools to execute smarter and more accurate trading investment decisions.

According to many published reports, Machine Learning and AI based Hedge Funds have managed to outperform generalized hedge funds as well as traditional quant funds decisively since 2010. In fact, AI funds achieved unprecedented net annual returns at a time that most traditional hedge funds in the industry across the globe are facing significant challenges.

New trading strategies

High Frequency Trading is sweeping more and more space in the industry

Ten years ago, high-frequency trading used to account for no more than 30% of the global stock market transactions. Today, it represents 65%, a share that will most likely exceed the 85% in the near future.

Technical and graphic analysis is becoming more and more old. Traditional chart patterns like (shoulder-and-head, ascending triangles, oscillators, moving averages, etc.) are not only over-passed, but they increasingly generate false or « fake » signals over time, which is even worse. Rules of trading have been changed, and all market players that want to keep profiting should adapt themselves to the new rules of the game. Those who refuse changing their old-fashion trading attitudes will not only be left behind, but also will easily give their money to the big high frequency monster trading machines that trade 24/5, at an astronomic speed, with no emotions, no panic, and most importantly, with NO MISTAKES.