Finance Feeds - Practical application of AI in trading

'Giuseppe Sette, the President and co-founder of Toggle AI, shares insights on the integration of AI in trading, highlighting its superior capability to analyze vast datasets which is not feasible for human traders.

He notes, “They can go both ‘deep and wide’…at a scale that is just not feasible for human traders.”

However, Sette clarifies that this does not necessarily set AI in opposition to human traders. Instead, AI serves as a tool that unveils investment opportunities, while human traders contribute a holistic perspective, crucial for identifying the best investment options.

Highlighting the practical success of AI, Sette mentions that “The greatest quant hedge funds and market makers have effectively taken the top spot in terms of risk-adjusted performance 10 to 15 years ago and never let it go”.

Sette also addresses the barriers to AI integration in trading, pointing out the necessity for a blend of AI and investing skills to fully leverage AI capabilities.

Sette further elaborates on AI’s role in risk management, stating it not only expands the horizon of traditional risk management but also helps in predicting future scenarios and identifying emerging macro trends, such as the implications of AI on inflationary pressures due to workforce replacement.'

Read the full article on Finance Feeds.