AI in trading?
I'm a software engineer/business owner with 20+ years of experience. I've been doing a deep dive into artificial intelligence, neural networks and trading. I’ve been inspired by the videos where AI can outsmart and beat humans in computer games. I’ve read all the latest AI research papers and based on that, I wrote my own Neural Net training and execution software for the financial markets.
I grow neural nets on a substrate and evolve them using genetic concepts from nature – DNA crossover, mutation, speciation, surviving of the fittest where each trader’s fitness is measured by how consistently it can make profits in the market.
I'm doing my tests in the cypto markets because L2 data feeds and API trading access is readily available. I’m seeing some great results when I apply my genetically evolved nets on the order book and order flow. However order execution on crypto is bad, exchange servers can’t handle high load periods, and slippage and high fees are killing it. I’m looking for a partnership/collaboration with a trading firm that has access to any kind of liquid market with low latency and low fees.
As a retail trader I’m climbing a steep uphill. My system can take in order flow and can exploit micro-structure patterns and can find and extract very profitable trading signals. The training of the neural net is run in parallel on 96 CPU machine for several days while I’m playing the role of “God” directing the evolution based on what performance I’m seeing.
I’m well seasoned, and know all the pitfalls of curve fitting etc... My system can generalize and can extract alpha and have hudge potential. I’m looking for low latency/low fees execution, which is not available in retail. I’m based in Manhattan, but I’m doing all this in a vacuum without talking to anyone. I’d appreciate any contacts with market making firms, FX or HFT firms.
To see some of my tests on youtube just search for this channel id: UCwvxSo9dsjxKrHPdcssvNWw
Thank you! Rob the Quant
Have you already validated simpler models? Opaqueness of neural networks make them very difficult for market time series data in my experience.
Thanks for reply. I'm not doing standard time series neural nets as everyone else. You're right that does not work. I'm doing something else. The problem is not that my model can't perform. It performs great actually. I'm just looking for a quality low latency/low fee execution that is not available to me as a retail trader.
There are many algo/HFT firms that you could join...depending on what you trade (equities, interest rates, futures, FX, etc...the infrastructure for each must be built separately). In crypto for example, Coinbase has a large internal prop desk, but there are others.
Yes, that's the right direction. Do you know any contacts I could talk to in NYC?
could you be a little more specific regarding what securities and timeframes for which your code shows positive results?
I've done testing only on Crypto, because that's what I have access to. It does around 400 trades per day. Any very liquid market with L2 orderbook and access to streaming trades might work. This is not one fixed strategy. Rather it's a way of finding and exploiting a signal in orderbook that my software is capable of. I would like to find a person who can understand the power of this concept because many people do not. Thank you.
if you do a basic search on a jobsite like glassdoor and do a search for "quant" in NewYork, you will find 600+ listings. There are many hedge funds looking for neural net and machine learning quants (TwoSigma is always looking...so is Citadel, Virtu, and many others). Find a listing that matches what you are looking to do...and then after 1-2 years you can use that as a springboard to go almost anywhere.
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