Generative AI for Trading Strategy Simulation | Stress Testing and Risk Management Made Easy

🎥 In this clip, we dive into the power of Generative AI in trading strategy development and risk management. Forget conventional backtesting alone – it’s time to go beyond. Traditional backtesting only captures limited historical events, with just a handful of samples like COVID or a few market shocks. That’s where Generative AI comes in.

🤖 By simulating entire time series under specific market conditions – what the speaker calls “pumps” – Gen AI allows traders and quants to stress test their strategies rigorously. Will a strategy fail under certain stress conditions? Could it trigger a margin call? Should you adjust your entry threshold? Gen AI simulations can provide answers to these crucial questions by generating diverse, realistic scenarios that backtesting simply can’t offer.

📊 Perfect for anyone serious about quantitative trading, AI-driven market simulations, and stress testing of trading strategies.
🔍 Key Takeaways:
– Why backtesting alone can’t predict performance under rare market conditions
– How Generative AI simulates time series based on specific market circumstances
– Stress-testing trading strategies for potential losses, stop-outs, and margin calls
– Importance of scenario generation in trading strategy optimisation
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About the Speaker:
Dr. Ernest P. Chan is a recognized expert in applying statistical models and machine learning to finance. He is the Founder and Chief Scientist at PredictNow.ai, where he helps investors make informed decisions using advanced data-driven insights. Additionally, he is the Founder and Non-executive Chairman of QTS Capital Management, LLC, which focuses on systematic trading strategies. Dr. Chan has worked at notable organizations like IBM Research, Morgan Stanley, and Credit Suisse, gaining experience in pattern recognition, data mining, and quantitative trading.
Dr. Chan obtained his PhD in Physics from Cornell University and his B.Sc. in Physics from the University of Toronto. He has also authored several influential books, including Quantitative Trading and Algorithmic Trading.
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🏷️ Hashtags:
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