Do you take risks based on data or intuition?

Technology is supposed to make investing not only more efficient but also less risky. In an interview, Marcos Lopez de Prado said: “My hope is that when these technologies are deployed correctly, they will make markets more efficient so when people invest, they will invest following scientific approaches rather than making wild speculation or wild guesses, and hopefully that helps society in the sense that, you want something as important as finance and investing grounded on scientific evidence, not on sheer speculation.” 

Some time ago, a single tweet by Elon Musk caused the stock value of Polish gaming company CD Project to soar. Of course, this was not a permanent change. This situation would not have happened if people invested based on science and verified data. Such sudden, impulse-driven changes in the market can lead to serious consequences. It is easy to make rash decisions for fear of losing capital. 

Artificial intelligence, learning from data, can make decisions based on facts only. How many bad decisions would you have avoided had you not been driven by impulse?

Read the entire interview here: