Technology for Financial Markets
There have been three great waves of technological change which have impacted financial markets:
- call your broker
- direct market access
- algorithmic trading
Each disrupted the prior status quo and emerged as the new trading paradigm. The next great wave is upon us:
- predictive analytics
Those who will embrace it successfully will prosper at the expense of those which do not.
Predictive analytics is a technology combining findings from the fields of statistics, data mining and machine learning. Its strength lies in processing massive amounts of data - to gain the extra insight for deriving the best plan of action. This is especially significant in today's information rich world of finance.
How does it work?