Robo-Funds: A Way To Beat The Markets?
AI is moving into all areas of life. One area that is ideally suited for it is finance. Since it is all numerical data, we can see how computerization really could help here.
In this video I discuss how Robo-Funds and robo-funds could be the future. The track record is not there yet but the early indications are that they funds can be the human money managers as well as the S&P. Of course, it is helpful to remember that only about 4% of money managers beat the overall index.
▶️ 3Speak
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I think the ideal scenario is when there is a bear market. I wouldn't hesitate to use it if I knew where to find them. I know the bot trading things have limitations as they operate on small swings doing many trades but miss the big pumps. Robo investing has to increase in popularity as just by what you are saying with Tesla shows it ain't stupid and works.
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maybe we could use robo funds to bring greater stability and liquidity to hive engine tokens as they grow in number and complexity
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I think robo traders will probably be the future. I mean there are various algos already implemented to trigger when certain conditions are met so all you have to do is have the AI verify the trade. Though I wonder how the robo traders will fare against each other when the system is run almost entire by them.
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I have to admit I wouldn't mind having a robo investor buying and selling crypto for me and I have no doubts we will have such AI available at some point. I still see the human factor highly important for now though.
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Since trading deals with a lot of numbers, it makes sense to automate the process. Love the term, 'Robo-Funds'
I am imagining a Robocop-type persona wearing a suit & a tie, managing my money in the basement.
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Automation makes trading easier and more convenient,the robo-funds won't be a bad idea...
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Summary:
In this video, Task discusses robo-traders and robo-funds, which are AI-driven investment funds that operate without human decision-making. He mentions that while these robo-traders are relatively new and still lack a comprehensive track record, some have shown promising results by outperforming the market. Task believes that automated investing through AI is the future, especially given that stock picking relies more on computation and data processing rather than human intelligence. He also compares the emotional susceptibility of humans in investment decision-making against the calculated nature of robo-traders. Task hypothesizes that in the long run, robo-investors will likely outperform traditional money managers and the S&P index.
Detailed Analysis:
Taskmaster4450 delves into the concept of robo-traders and robo-funds, which are AI-driven investment mechanisms that remove human intervention from the decision-making process. He highlights the limited track record of these robo-traders due to their newness in the market. Despite this, Task mentions an article from MarketWatch discussing a fund that has outperformed the market index over the past 12 months, showcasing the potential of these automated systems to generate significant returns.
The speaker emphasizes the contrast between human money managers and AI-driven robo-traders. Task acknowledges that while luck and market dynamics can lead to short-term success in stock picking, sustainable performance requires a consistent and data-driven approach, a strength exhibited by robo-traders. He argues that the investment arena is ripe for automation, considering the historical challenges faced by human fund managers in surpassing the market index consistently.
Task underscores the emotional factors that influence human investment decisions, such as fear and greed, and contrasts this with the rational and data-focused nature of robo-traders. He acknowledges the strategic thinking of experienced money managers but suggests that even they are not immune to emotional biases that may affect their performance. Task predicts that over time, robo-investors will likely outperform both the S&P index and traditional money managers, given their systematic and algorithmic approach to investing.
In conclusion, Taskmaster4450 invites viewers to share their experiences with robo-traders and robo-investors, seeking feedback on whether individuals have utilized these automated systems in their investment strategies. He expresses his belief that with a longer track record, robo-investors will demonstrate superior performance compared to conventional human fund managers, shaping the future landscape of the investment industry.