Intuition will allow traders to fight the machines

As reported by Reuters, according to the efficient market hypothesis (EMH) all market participants have equal access to historical data on market prices, publicly available information and private information. In this way, none of the market participants has an advantage over others in making investment decisions.

The hypothesis also states, what, using only human capabilities, impossible to beat the market, so that man has no advantage over machine, которая использует четкие алгоритмы в своей работе.

However, co-author of the new study and former Fellow in Neuroscience and Finance at the University of Cambridge, also former Goldman Sachs and Deutsche Bank employee John Coates stated, that the physiological condition of traders has a major impact on their success. “Humans can really compete with machines”, – уверен Коутс.

The study authors examined the work 18 highly skilled traders of the City of London, who trade in financial products, in 2012 G., когда последствия финансового кризиса почти перестали ощущаться.

Researchers have compared indicators of physiological activity of traders (feelings of hunger, pain and heart contractions) with indicators 48 men of other professions, but of a similar age. Was, that traders are more susceptible to changes in heart rate in their bodies, чем остальные специалисты.

According to Coates, financiers got too carried away with deliberate reasoning and completely lost sight of that, what happens in the ligament of the human brain and body. After several years focusing exclusively on algorithmic trading (Trading по заданному алгоритму) отрасль ищет возможность улучшить способности трейдеров.