Robot House Trading

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Robots will rule the world

You might not believe me, but I assure you, robots will run the world.

Recently, someone made a rude comment on my Youtube channel. It went something like this:

“You can't trade Forex with robots.” ~Some Guy

It was much more lewd, but I'll spare you the details.

This comment makes me laugh, because automated systems currently run equipment much more complicated than trading clients/systems.

Do you know who landed that last plane you flew on? A computer.

Guess how your car knows when to shift. A computer.

Computers are better at most games than we are, they're better at predicting the weather than we are, and in short order, they'll even be better at driving cars than we are.

Oh, and when your phone auto suggests messages to send as text replies, that's because the software is reading everything you say and learning how to communicate like you. Most of the time, the recommendations are pretty good. I assure you, language prediction is much harder than trying to figure out what to do if a currency's value goes up or down in the next 6 hours. Much, much harder.

Finally, computers are writing movies and books now. They're really bad, but this is just the beginning.

That sounds terrifying.

I get that people are resistant to this. It sounds really scary. The idea that electronic machines will one day control everything you touch without the need for any human intervention conjures images of Skynet and Armageddon.

There's justification for fear. With that said, however, you do not want to be in the camp of people who don't believe this is happening. The landscapes of our entire global economy, infrastructure and even our social lives are about to see the most dramatic (and rapid) changes they've endured since the dawn of humanity. It's going to be bigger than the industrial revolution, bigger than the Internet. Lastly, it's probably going to happen in the next 50 years.

How do you know this?

I don't. I'm guessing. But it's a calculated guess.

In the last 50 years, computers have become more powerful by shocking orders of magnitude.

The computer equipment that sent astronauts to the moon in 1969 consumed a large part of an entire space vessel and cost millions of dollars. A computer infinitely more powerful than those systems now sits in your pocket or on your desk, and costs only a few hundred dollars. Thus, it's not a stretch to pontificate that advances in computing over the next 30 years will be just as drastic. Computers already operate at speeds far in excess of the human mind. They're even winning Jeapordy now.

So what does this mean for the future of trading?

I don't think everyone needs to trade or invest with automated systems (robots). I do believe, however, that everyone interested in investing should accept that it's happening, that some of the largest funds in the world are doing it, and that there are all kinds of unexpected consequences (rapid market volatility).

You need to wake up. Software is doing everything now. Unless we nuke ourselves to oblivion, that trend will continue.

John DeVries