This post, leveraging AI, summarizes and analyzes the key aspects of the research paper “LatestKISTOCK.doc”. For in-depth information, please refer to the original PDF.
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English Summary
The stock market as a game: An agent-based approach to trading in stocks is proposed by Eric Engle, who suggests that machine intelligence seems destined to replace human brainpower. Investing is the ultimate numbers game and when it comes to crunching numbers, silicon beats gray matter every time… Today those early adopters of AI, like Fidelity Investments and Batterymarch Financial, refuse to even talk about technology… Data flows in not just from standard databases but from everywhere: CNN, hallway conversations, trips to the drugstore.
Key Technical Terms
Below are key technical terms and their explanations to help understand the core concepts of this paper. You can explore related external resources via the links next to each term.
- Stock Market Game [Wikipedia (Ko)] [Wikipedia (En)] [나무위키] [Google Scholar] [Nature] [ScienceDirect] [PubMed]
Explanation: {Concise English explanation}: Each player tries to maximize their wealth cooperatively or conflictually; stock market trading is often represented as a zero sum game in relative terms… However, while economic games are in absolute terms clearly positive sum – and this has been scientifically proven by Adam Smith15 and Ricardo16 – we can recast them as zero sum games in relative terms. This reintroduces the sense of competition making the game more interesting for all participants… The goal then of a stock market game is to not merely maximize wealth but rather to maximize wealth faster than one’s competitors. What are the properties of a stock market? In the stock market we are presented with nearly perfect information… We even know the trading patterns of „insider“ traders who are subject to disclosure requirements when they trade. However, the problem is not getting the information – rather the problem is there is too much information! A major problem involved in modelling the stock market is gathering data and putting it into a useful knowledge base… While we know past information nearly perfectly we do not know the intentions or opinions of our opponents. We do not know what the portfolio of our opponent lookslate… Is the stock market deterministic or random? In fact the stock market is deterministic… Prices rise 14 Marc. T. Law and Fazil Mihlar, Debunking the Myths: A Review of the Canada-US Free Trade Agreement and the North - Stock Market Game (Stock Market) [Wikipedia (Ko)] [Wikipedia (En)] [나무위키] [Google Scholar] [Nature] [ScienceDirect] [PubMed]
Explanation: {Concise English explanation}: Each player tries to maximize their wealth cooperatively or conflictually; stock market trading is often represented as a zero sum game in relative terms… However, while economic games are in absolute terms clearly positive sum – and this has been scientifically proven by Adam Smith15 and Ricardo16 – we can recast them as zero sum games in relative terms. This reintroduces the sense of competition making the game more interesting for all participants… The goal then of a stock market game is to not merely maximize wealth but rather to maximize wealth faster than one’s competitors. What are the properties of a stock market? In the stock market we are presented with nearly perfect information… We even know the trading patterns of „insider“ traders who are subject to disclosure requirements when they trade. However, the problem is not getting the information – rather the problem is there is too much information! A major problem involved in modelling the stock market is gathering data and putting it into a useful knowledge base… While we know past information nearly perfectly we do not know the intentions or opinions of our opponents. We do not know what the portfolio of our opponent lookslate… Is the stock market deterministic or random? In fact the stock market is deterministic… Prices rise
View Original Excerpt (English)
THE STOCK MARKET AS A GAME: AN AGENT BASED APPROACH TO TRADING IN STOCKS Eric Engle “If ever there were a field in which machine intelligence seemed destined to replace human brainpower, the stock market would have to be it. Investing is the ultimate numbers game, after all, and when it comes to crunching numbers, silicon beats gray matter every time. Nevertheless, the world has yet to see anything like a Wall Street version of Deep Blue, the artificially intelligent machine that defeated chess grand master Gary Kasparov in 1997. Far from it, in fact: When artificial-intelligence-enhanced investment funds made their debut a decade or so ago, they generated plenty of media fanfare but only uneven results. Today those early adopters of AI, like Fidelity Investments and Batterymarch Financial, refuse to even talk about the technology…Data flows in not just from standard databases but from everywhere: CNN, hallway conversations, trips to the drugstore. ‚Unless you can put an emotional value on certain events and actions, you can’t get the job done.‘ Naturally, investors don’t process this hodgepodge of inputs according to some set of explicit, easily transcribed rules. Instead, the mind matches the jumble against other jumbles stored in memory and looks for patterns, usually quite unconsciously. ‚Often, great investors can’t articulate the nature of their talent. They’re like pool players who make incredible trick shots on intuition.‘ Fine for them, but how do you code that?”1 A Taxonomy of Games A game can be defined as a set of rules (conditionals) with one or more goals (also conditionals) with an outcome of „win“ or „loss“ depending on whether the conditionals are fulfilled.2 Games can either be positive sum, zero sum, or negative sum.3 Positive sum games, such as trading goods, are games in which all parties to the game…
🇰🇷 한국어 보기 (View in Korean)
한글 요약 (Korean Summary)
게임으로서의 주식 시장 : 주식 거래에 대한 에이전트 기반 접근 방식은 Eric Engle이 제안합니다. Eric Engle은 기계 인텔리전스가 인간의 두뇌 전력을 대체 할 운명이 보인다고 제안합니다. 투자는 궁극적 인 숫자 게임이며, 숫자가 크기가 큰 숫자와 관련하여 실리콘은 매번 회색 물질을 이겼습니다 … 오늘날 Fidelity Investments 및 Batterymarch Financial과 같은 AI의 얼리 어답터는 기술에 대해 이야기하는 것을 거부합니다.
주요 기술 용어 (한글 설명)
- Stock Market Game
설명 (Korean): {간결한 영어 설명} : 각 플레이어는 자산을 협력 적으로 또는 상충적으로 극대화하려고합니다. 주식 시장 거래는 종종 상대적인 용어로 제로 합계 게임으로 표시됩니다. 그러나 경제 게임은 절대적인 용어로 분명히 긍정적 인 합계입니다. 그리고 이것은 Adam Smith15와 Ricardo16에 의해 과학적으로 입증되었습니다. 이것은 경쟁 감각을 재 도입하여 모든 참가자들에게 게임을 더 흥미롭게 만듭니다. 주식 시장 게임의 목표는 부를 극대화 할뿐만 아니라 경쟁 업체보다 부를 더 빨리 극대화하는 것입니다. 주식 시장의 특성은 무엇입니까? 주식 시장에서 우리는 거의 완벽한 정보를 제공합니다 … 우리는 심지어 거래 할 때 공개 요구 사항에 따라 “내부자”거래자의 거래 패턴도 알고 있습니다. 그러나 문제는 정보를 얻지 못하는 것입니다. 오히려 문제는 정보가 너무 많다는 것입니다! 주식 시장 모델링과 관련된 주요 문제는 데이터를 수집하여 유용한 지식 기반에 넣는 것입니다 … 과거 정보를 거의 완벽하게 알고 반면 상대방의 의도 나 의견을 알지 못합니다. 우리는 상대의 포트폴리오가 어떻게 보이는지 모릅니다 … 주식 시장은 결정 론적이거나 무작위입니까? 실제로 주식 시장은 결정 론적입니다 … 가격은 14 Marc입니다. T. Law and Fazil Mihlar, 신화를 논란
(Original English: {Concise English explanation}: Each player tries to maximize their wealth cooperatively or conflictually; stock market trading is often represented as a zero sum game in relative terms… However, while economic games are in absolute terms clearly positive sum – and this has been scientifically proven by Adam Smith15 and Ricardo16 – we can recast them as zero sum games in relative terms. This reintroduces the sense of competition making the game more interesting for all participants… The goal then of a stock market game is to not merely maximize wealth but rather to maximize wealth faster than one’s competitors. What are the properties of a stock market? In the stock market we are presented with nearly perfect information… We even know the trading patterns of „insider“ traders who are subject to disclosure requirements when they trade. However, the problem is not getting the information – rather the problem is there is too much information! A major problem involved in modelling the stock market is gathering data and putting it into a useful knowledge base… While we know past information nearly perfectly we do not know the intentions or opinions of our opponents. We do not know what the portfolio of our opponent lookslate… Is the stock market deterministic or random? In fact the stock market is deterministic… Prices rise 14 Marc. T. Law and Fazil Mihlar, Debunking the Myths: A Review of the Canada-US Free Trade Agreement and the North) - Stock Market Game (Stock Market)
설명 (Korean): {간결한 영어 설명} : 각 플레이어는 자산을 협력 적으로 또는 상충적으로 극대화하려고합니다. 주식 시장 거래는 종종 상대적인 용어로 제로 합계 게임으로 표시됩니다. 그러나 경제 게임은 절대적인 용어로 분명히 긍정적 인 합계입니다. 그리고 이것은 Adam Smith15와 Ricardo16에 의해 과학적으로 입증되었습니다. 이것은 경쟁 감각을 재 도입하여 모든 참가자들에게 게임을 더 흥미롭게 만듭니다. 주식 시장 게임의 목표는 부를 극대화 할뿐만 아니라 경쟁 업체보다 부를 더 빨리 극대화하는 것입니다. 주식 시장의 특성은 무엇입니까? 주식 시장에서 우리는 거의 완벽한 정보를 제공합니다 … 우리는 심지어 거래 할 때 공개 요구 사항에 따라 “내부자”거래자의 거래 패턴도 알고 있습니다. 그러나 문제는 정보를 얻지 못하는 것입니다. 오히려 문제는 정보가 너무 많다는 것입니다! 주식 시장 모델링과 관련된 주요 문제는 데이터를 수집하여 유용한 지식 기반에 넣는 것입니다 … 과거 정보를 거의 완벽하게 알고 반면 상대방의 의도 나 의견을 알지 못합니다. 우리는 상대의 포트폴리오가 어떻게 보이는지 모릅니다 … 주식 시장은 결정 론적이거나 무작위입니까? 실제로 주식 시장은 결정 론적입니다 … 가격 상승
(Original English: {Concise English explanation}: Each player tries to maximize their wealth cooperatively or conflictually; stock market trading is often represented as a zero sum game in relative terms… However, while economic games are in absolute terms clearly positive sum – and this has been scientifically proven by Adam Smith15 and Ricardo16 – we can recast them as zero sum games in relative terms. This reintroduces the sense of competition making the game more interesting for all participants… The goal then of a stock market game is to not merely maximize wealth but rather to maximize wealth faster than one’s competitors. What are the properties of a stock market? In the stock market we are presented with nearly perfect information… We even know the trading patterns of „insider“ traders who are subject to disclosure requirements when they trade. However, the problem is not getting the information – rather the problem is there is too much information! A major problem involved in modelling the stock market is gathering data and putting it into a useful knowledge base… While we know past information nearly perfectly we do not know the intentions or opinions of our opponents. We do not know what the portfolio of our opponent lookslate… Is the stock market deterministic or random? In fact the stock market is deterministic… Prices rise)
발췌문 한글 번역 (Korean Translation of Excerpt)
게임으로서의 주식 시장 : Eric Engle의 거래에 기반을 둔 에이전트 기반 접근 방식 Eric Engle은“기계 지능이 인간의 두뇌 힘을 대체 할 운명이있는 분야가 있으면 주식 시장이 그럴 것입니다. 투자는 궁극적 인 숫자 게임입니다. 결국 숫자가 크기가 큰 숫자를 기록 할 때, 세계적으로는 대기적으로 대단한 일을 보지 못했습니다. 1997 년 그랜드 카스파 로프 (Gary Kasparov)는 사실상 : 인공 지능 강화 된 투자 자금이 10 년 전과 데뷔했을 때, 그들은 많은 미디어 팬 페어를 생성했지만 오늘날의 기술에 대해서도 대체로 이야기하기 위해 AI의 초기 채택자를 불러 일으켰습니다. 약국으로의 여행. 특정 사건과 행동에 대한 정서적 가치를 부여 할 수는 없습니다 직관에 대한 놀라운 속임수 샷.‘그들에게는 어떻게 그것을 코딩 하는가?”1 게임 분류 게임 게임은 조건부에 따라 “승리”또는 “손실”의 결과를 가진 하나 이상의 목표 (조건부)로 일련의 규칙 (조건부)으로 정의 될 수 있습니다. 2 게임은 긍정적 인 합계, 또는 부정적인 합계가 될 수 있습니다.
Source: arXiv.org (or the original source of the paper)
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