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Subject: OT: AI Will Kill Stock Exchanges

Author: Graham Laight

Date: 10:01:56 06/06/01


Once upon a time, chess computers were expensive, and not especially good.
Gradually, they became cheaper and better. Now anyone (who already has a
computer) has the ability to sit at home and generate excellent chess moves very
cheaply.

Right now, if you want to buy the stock selection program "Tradingsolutions", it
will cost you $1,000. Presumably, it will allow you to select stocks and time
your purchases to improve your chances of making money.

In the fullness of time, one would expect the number of people using such
programs to increase, and therefore for stock market timing and selection in
general to improve.

However - if most market participants become cleverer at stock selection, nobody
will ever buy a stock if it is significantly above its "true" (by consensus of
trading programs) price. Equally, people will be unwilling to sell below the
"true" price.

The consequence of this will be that stock market graphs, which are currently
bouncy and full of life, will become a deathly dull flat line. No more
opportunities to make "a killing" for anyone.

Right now, I believe that this, fantastic as it sounds, will actually happen.

AI could have many strange, unexpected consequences!

n.b. - website for AI trading - http://www.neural101.com

-g



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