Since the topic is Machine Learning and Artificial Intelligence applied to trading, why don't we start by looking at how nature deals with trading: http://www.rattraders.com/
I thought it was an interesting concept... they're essentially letting nature evolve trading strategies. While rat's tend to reproduce quite fast it's still quite slow compared to what your average computer can do.
In the spirit of evolution I made my own application that uses Genetic Programming algorithms to create trading strategies and I use them to trade on the stock market. I post my results on twitter in order to get a time-stamp: www.twitter.com/darwins_finches
So far the results have been quite promising: from 09-09-09 to 4-13-2010 we have accumulated about 25% profit when the stocks we trade have only gone up 18.77%. The S&P 500 has gone up 16.76% in the same period, so we're outperforming both the Buy & Hold strategy for our stocks and the S&P 500.
Thursday, April 22, 2010
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