How ML in Combination with Data Analytics Drives Affordable Trading

Capital Markets CIO Outlook | Tuesday, January 21, 2020

ML and data analytics enables the traders to analyze vast resources of data efficiently as well as at affordable costs. 

FREMONT, CA: When it comes to trading, data and technology are the leading factors that impact the decisions of the traders. In particular, machine learning (ML) and data analytics are contributing primarily to the trading business. Data analytics and ML enable the traders to identify key trading opportunities as well as to reduce trading costs. Currently, data that are being leveraged for trading purposes can be categorized into two categories based on trading phases. Data that are being collected and analyzed during the research phase offers an edge to the trading strategies. In the research phase, exploration is important, whereas time is not so critical. The same tools that were used during the research phase can be used during the execution phase as well. However, the speed of analysis is critical in this phase. 

ML and data analytics are increasingly being used by the investment firms to collect and analyze internal as well as external sources of data. Earlier, human resources were being employed for the above task. The traditional approach was time-consuming as well as expensive. The exponential growth of data combined with an increasingly complex market made it impossible for the firms to rely wholly on human resources. 

Alternatively, ML and data analytics offered a way for the traders to monitor data constantly and news feeds as well as extract actionable insights. The new approach is affordable as well as effective, considering the massive amounts of computations needed in the present trading scenario. Thus, the cost of processing a vast amount of data can be significantly reduced with the help of ML and data analytics. Moreover, the above capability allows traders to gain considerably in terms of speed and time.

Traders are increasingly deploying ML and data analytics across the trading processes. Advancements in technology and the need for affordable solutions will further power the adoption of the above-mentioned technologies in the trading landscape.

See Also: Top Data Analytics Solution Companies

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