Machine learning: the big risks and how to manage them
“Now we face an even bigger challenge [than algorithmic trading] — machine learning. This technology, centred on computer models that can learn from experience, poses serious challenges and requires a global response.”
USAGOLD note: It’s not like there is a scarcity of threats for investors to monitor with respect to computerized trading systems. This article, in essence, serves as warning from the chairman of the UK-based Fixed Income, Currencies and Commodities Markets Standards Board that machines can run amuck, i.e. fall victim to the HAL Syndrome. If you have never heard of “machine learning” perhaps the time has to come to get a basic education at the link above.