In markets like the stock market where anyone can have access to information, human intelligence can't perform as well as machine. Luke Ellis, CEO of Man Group plc, the world's top-three hedge fund investment firm, said on the second day of ASK 2017 on May 18 in a keynote speech, "In times of the Fourth Industrial Revolution, new technologies such as big data and machine learning must be combined with investment technique."
He continued, "Today investors all across the world know what the Fed Chairman said and what that means in real time. In terms of ability to forecast the future, humans have no more competitive edge against machine."
He also said, "How can you analyze and find meaningful patterns out of gobs of market data coming out every hour? That's where big data comes in." He gave an example that 2.7 billion data came out on November 9 last year when President Trump won the U.S. presidential race.
"If you can create algorithms that can predict the future with the probability of 50.1 percent from 50 percent by taking advantage of these data, you can increase your return substantially," he explained, based on a principle by which the casino makes money by playing against a large number of customers with slightly higher odds.