ilmscore | How Trading Algorithms CONTROL The Markets!!

How Trading Algorithms CONTROL The Markets!!

Predictions from this Video

Total: 7
Correct: 2
Incorrect: 0
Pending: 5
Unrated: 0
Prediction
Topic
Status
AI traders have learned to collude using a price-trigger strategy, similar to protection rackets, to maintain stable prices and high profits.
"The AIS learned to implement a price trigger strategy straight out of a mob protection racket."
AI trading collusion
Pending
AI traders, due to overpruning bias (throwing out good strategies because of one bad outcome), may inadvertently collude by collectively avoiding aggressive trading strategies.
"The AIS responded by blaming the strategy. It would mark aggressive trading as disastrous and never try it again."
AI trading collusion
Pending
The market's nature will lead to algorithmic collusion, regardless of whether AIs are sophisticated enough to plan it or are making mistakes.
"The market naturally selects for collusion, whether the AIS are smart enough to plan for it or too dumb to avoid it."
AI market impact
Pending
Invisible AI cartels may be forming now, increasing trading costs for various financial instruments, and these cartels would be undetectable and unstoppable.
"They could be forming invisible cartels right now, raising the costs of everything from your 401k trades to currency exchanges, and we'd have no way to detect it, much less even stop it."
AI market impact
Pending
AI is predicted to be a central factor in understanding the causes of future financial crises.
"AI could play quote a central role in the afteraction reports of a future financial crisis."
AI financial crisis risk
Correct
AI monoculture could lead to thousands of firms receiving the same signal simultaneously, causing their similar AI systems to reach the same conclusion and execute identical trades.
"Thousands of independent firms get the same signal at the same microcond. Their similar AI brains sees the same pattern, reach the same conclusion, and execute the same trade."
AI monoculture financial risk
Correct
A future financial crisis stemming from AI monoculture would be unrecoverable due to a lack of counterparties to absorb trades.
"In Gensler's scenario, there would be no recovery because there'd be nobody left on the other side of the trade to buy the dip."
AI financial crisis risk
Pending