The Online Investing AI Blog

Last night I was watching the news (a terrible habit I need to get rid of!) and there was another story about how bad the economy is and how hard it is to find a job. I always have the same reaction when people say they are looking for a job. It makes me wonder, “Who wants a job?”

Having a job for decades and retiring on a pension was a system that ended in the 1980’s. Since then, the economy has changed so rapidly that working in the same job for 20 years is nearly impossible. Besides that, the financial mismanagement of companies and the government has made pensions and social security unreliable.

So what’s the solution?

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Accelerating Technology, Dreams Come True, Great Books, Investing, Money, Online Investing AI, Success, US Economy economy, Investing, jobs, Money, pensions, social security, Success, technology, the wealth singularity, tv

Price bubbles have been going on since the invention of markets by humans thousands of years ago. However, most people are completely oblivious to how they work, and how to profit from them.

Price of Crude Oil Jan 2004 - Feb 2010

Bubbles are simply the expression of widespread desire to own an asset, regardless of price. As the price goes up, more people find out about it and buy. This pushes the price up further, and still more people find out about it. It is a virtuous cycle.

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Pic by Jeff Belmonte @ Flickr

The Wealth Singularity is a point when the power of technology has become so massive that wealth and abundance becomes ubiquitous.

The theory is based on the works of leading futurists like Ray Kurzweil and Vernor Vinge, who believe that the exponential growth in computing power will lead to a Singularity. Technology, whether it’s the wheel or the personal computer, also leads to a leap in productivity and the ability to generate wealth.

That Singularity may be closer than you think.

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One day, your ability to generate wealth will be automatic and ever-present.

How can we make this assertion?

The exponential wave of technology, which is turning the globe into interconnected, untethered web of information, will eventually wash over the world of personal finance.

Those first waves have already lapped onto the shore. The tsunami, though, is building.

In this untethered world, the power of mobile financial apps are growing in power.

Here are some  great apps you can use to monitor the market and, in some cases, use to trade.

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Accelerating Technology, Automated Trading, Internet, Investing, Money, Online Investing AI apps, financial, management, mobile, Money, personal finance, tech, technology, wealth

As a limited time promotion, we are giving away the first two chapters of The Wealth Singularity for free. What is the Wealth Singularity?

We believe that technology accelerating at an ever increasing pace. But that is not all that is changing. New technology is used throughout the world to make money, for both individuals and corporations.

How will Artificial Intelligence revolutionize the investing game? How are blogs, Twitter and Facebook revolutionizing the Internet? How can you achieve financial freedom without wasting a lifetime in a cubicle?

These are important questions that are answered in this eBook.

Why get left behind as other people and businesses are using new technology to cash in?

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Accelerating Technology, Automated Trading, Business Strategy, Dreams Come True, Great Books, Internet, Investing, Money, Online Investing AI, Success ebooks, finances, financial success, learning, Money, spending, Success, the wealth singularity

Just remember, when you control the mail, you control… information.
–Newman

And, dear Newman, when you control information, you control money.

Money used to be hard, solid objects. Arrowheads. Tools. Gold. Coins. They were all used at one time as money.

But these objects still represented an idea. That idea could be protection. It could be progress and ease. It could represent power and the ability to control scarce resources.

Eventually, though, money and wealth became more conceptualized. Look at where we’re at now. For good–and some would argue for ill–money is now just information.

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Accelerating Technology, Automated Trading, Great Books, Investing, Money, Online Investing AI economy, info, information, Money, wall street, wealth hackers

Expert Profiles gives Automated and Algorithmic trading system developers and theorists a chance to introduce us to their concepts and strategies.

Our expert featured in this edition of Expert Profiles is Jez Liberty.

Jez is extremely passionate about Automated Trading and its technology. We’ve enjoyed Jez’s posts on Automated Trading at his blog, Au.Tra.Sy blog.

Here’s Jez’s interview:

What made you choose to develop Automated Trading systems?

I have a long-held fascination with the trading world and a passion for technology. So automated/mechanical trading system sits at an ideal crossroads for me and represents an exciting topic to work on.

Additionally the prospect of going into a corporate career never appealed to me; whereas automated trading systems can give you independence and more freedom (and hopefully better wealth).

What are the challenges of developing Automated Trading systems?

There are lot of information out there and it can be hard to know what to pick to get started. In my case, I started trying to automate Technical Analysis patterns with “brute force” backtesting/optimization, which did not prove successful (I am skeptical on the long-term profitability of that approach). Further down the line, I stepped back and got more interested in learning about the nature of the markets, statistics and money management. This led me to have a clear vision of how I could succeed in trading automated systems.

But developing and trading an automated trading system is also a long process, far from the get-rich-quick scheme, that many dubious salesmen would have you believe. So you have to put in some hard work. But the reward and payoff are definitely worth it!

Working on your own can also make you feel isolated. However, my blog and other blogs such as Online Investing are a great way to engage and collaborate with like-minded people.

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Whether you’re trading your own strategies, or using an Automated Trading system to enter and exit positions, backtesting is the proof-du-jour of due diligence.

The rationale is, if you take the strategy and allow it to trade through historical data, the strategy should achieve similar results in real world trading. But there are a few reasons why backtesting can fail despite the best backtested results.

There are a few names for the first type of backtesting failure that we’ll look at, but it’s often referred to as data-snooping.

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Accelerating Technology, Automated Trading, Investing, Money, Online Investing AI backtest, over fitting, results, returns, strategies, Success, test, trading

Google just released Buzz, sort of a souped up Twitter. It’s an awesome idea, and as usual, Google has refined an existing idea to make it better.

First it was search, and Google made its first billion by dominating the search engine market with a better service. Yahoo and a dozen other search engines have faded into the background with the success of Google’s search algorithm. Then it was GMail, the application that made web based email actually work well. Then Chrome, which is way faster than Firefox and I raved about in this post.

And now Buzz, which allows us to aggregate and communicate Tweet-like messages. And it goes farther by inlining images and creating more communication with less clicking. It also integrates with Twitter, Flickr, and Google Reader.

Why is Buzz a revolution?

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Accelerating Technology, Internet applications, buzz, collective intelligence, emotion, google, ideas, popularity, search engines, yahoo

Do you have a problem with your personal financial picture?

Most people engage in problem-solving in a series of steps. They isolate the problem. Brainstorm several solutions. And then they try each solution until they arrive at one that seems to work.

But, often, the problems are so big and the solutions so varies, that they quit and go back to the status quo.

Chip and Dan Heath, authors of “Made to Stick,” say there’s a better way in their new book, “Switch” According to the authors, who talk about the process in Fast Company, it’s a matter of finding a bright spot.

Bright spots are areas of success.  You want to copy success, not solve problems, they say.

“A problem may look hopelessly complex. But there’s a game plan that can yield movement on even the toughest issues. And it starts with locating a bright spot — a ray of hope.”

Here’s how you can apply it to your finances.

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Accelerating Technology, Great Books, Investing, Money, Online Investing AI, Success books, bright spot, heath, made to stick, personal finance, switch