Intelligent finance - an emerging direction
METADATA ONLY
Loading...
Author / Producer
Date
2006
Publication Type
Journal Article
ETH Bibliography
yes
Citations
Altmetric
METADATA ONLY
Data
Rights / License
Abstract
Intelligent finance represents a new direction recently emerging from the confluence of several distinct disciplines in financial market analysis, investing and trading, removing any historical or artificial barrier between them. It is conceived as the science, technology and art of the comprehensive, predictive, dynamic and strategic analysis of global financial markets, towards a unification and integration of academic finance and professional finance. As a comprehensive approach, it is a quest for absolute positive and non-trivial returns in investing and trading by exploiting complete information about financial markets from all general perspectives, drawing ideas, theories, models and techniques from many related academic disciplines, such as macroeconomics, microeconomics, academic finance, financial mathematics, econophysics, behavioural finance and computational finance, and from professional schools of thought, such as macrowave investing, trend following, fundamental analysis, technical analysis, mind analysis, active speculation, etc. In terms of risk management, intelligent finance is expected to minimize the very last risk—the incompleteness of an investing or trading method or system. The theoretical framework of intelligent finance consists of four major components: financial information fusion, multilevel stochastic dynamic process models, active portfolio and total risk management, and financial strategic analysis. We first provide the background from which intelligent finance has recently emerged as a new direction in finance research and industry, and then provide a brief theoretical review of the predictability of financial markets since Bachelier. After these background discussions, we clarify the major research directions of intelligent finance.
Permanent link
Publication status
published
External links
Editor
Book title
Journal / series
Volume
6 (4)
Pages / Article No.
273 - 277
Publisher
Routledge
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
Intelligent finance; Financial information fusion; Multilevel stochastic dynamic process models; Active portfolio and total risk management; Financial strategic analysis
Organisational unit
03738 - Sornette, Didier (emeritus) / Sornette, Didier (emeritus)