In the financial ecosphere where processes had stagnated for years, it has increasingly been disturb by the evolution of existing and introduction of new paradigms.
Machine learning algorithms are one of those ideas that have permeate the upper layers of the financial space. You will find that top banking institutions and large institutional players by having access to these algorithms are rife with their usage in multiple aspects of their business.This must be for a good reason otherwise these changes would have devolve companies into a financial quagmire.
Now what can brokerages and small institutional/retail traders do to compete against these financial behemoths?
Since machine learning algorithms is a key ingredient for coming up with financial innovative products and technologies in the coming years if not months why not look to partner up with AI companies that are able to offer you the ability to differentiate yourself from competitors whether your a brokerage or trader.
Lets look at a few scenario's for a brokerage:
Offering your traders a customize report delivered at the opening of each geographical market and/or when they want it. This report is generated by algorithms that are fed unstructured data from multiple news sources, social media, real-time trade bias from exchanges and even open trade positions that your trader has in play. The report is an overview of the markets that the trader is involved with in real-time.
How about a service with your brokerage allowing retail traders to use machine learning algorithms providing a way to help them come up with new and potentially better trading strategies. If you are a hedge fund/deep pocket institutional firm then acquiring the talent to create an AI team is not a major issue. A retail trader on the other hand cannot duplicate what these institutional firms are doing so why not offer the ability to create strategies using machine-learning algorithms as a service.
There are many situations in your business where algorithms can be effectively use in the months ahead, so why not?