Trading is Human

One of the key reasons why trading is considered a human activity is because it requires human decision-making and negotiating skills. When people engage in trade, they must weigh the costs and benefits of the transaction, assess the quality and value of what is being offered, and negotiate with other parties in order to reach a mutually beneficial agreement. These skills are uniquely human and cannot be replicated by machines or other animals.

Furthermore, trading is a social activity that requires trust, cooperation, and communication between individuals. This trust is built on a foundation of social norms and institutions that have developed over time, such as contracts, laws, and cultural traditions. While technology and other innovations have transformed the nature of trade over time, it remains a key aspect of human society that reflects our unique capacity for cooperation and exchange.

The human brain is the control center of the nervous system and is responsible for many essential bodily functions. It is a complex organ made up of different regions and structures that work together to allow us to think, learn, feel emotions, make decisions and control our body movements. The largest part of the brain is the cerebrum which is responsible for conscious thought, memory, perception and voluntary movements. It is also involved in language, learning, and problem-solving.

We here at Deep Market Making Inc. embrace the strategic pillar that trading is human when we design our models and software. We seek to provide insight to our clients through accuracy and transparency in explaining the underlying driving factors of our real-time prices on any corporate bond. We are able to instill confidence in our clients to feel empowered by the AI to perform at an extremely high level when trading in the market. We often compare the experience to unleashing a new data weapon upon the “credit matrix” that transforms a human into a superhuman. Utilizing Artificial Intelligence (AI) and Machine Learning (ML) we design our model infrastructure and neural networks to train themselves from vast swaths of data that have been derived by past human behavior to predict future outcomes.

We firmly believe that AI will not be able to replace traders in the credit markets. Machines, no matter how smart they become, can only execute the objectives they are given. Trading is a two-party activity – you can’t trade with yourself – so the humans have to set the trading objectives for the machine to follow. For this reason, trading cannot be fully automated with no human supervision, and this is also inherent in why credit markets still trade predominantly OTC.

We are able to assist a human brain by adding another 50 plus layers through a second AI brain. These layers unleash the ability of compute power into the trader’s hands. The trader must always still direct the decisions in the cockpit but with the help of an AI badass that can provide real-time data in a way the human brain could never achieve on its own. We remove all the tedious and repetitive processes that must be performed when going through the bond?pricing checklist to determine the correct price on a bond. We help market makers avoid “land mine” trades that can have a big negative impact on their P&L by decreasing the probability of a trading mistake. We increase the time efficiency, productivity and profitability of each trader that has decided to don a Superhero cape. We empower the trader to spend their time on more important “proprietary” factors that only a human could know when deciding how they want to trade.

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