Citadel Securities's Zhao: Optimistic With AI Revolution

The video discusses the evolution of trading from human to machine interactions, highlighting that while machines and models are prevalent, human traders remain crucial, especially in unique situations. Modern traders are likened to fighter jet pilots, equipped with advanced technology to make informed decisions. The video emphasizes the importance of human logic in unprecedented scenarios, such as the COVID-19 pandemic, where historical data may not provide clear guidance.

What is the primary change in financial markets discussed in the video?

• The increase in the number of traders on the floor.

• The transition from person-to-person to machine-to-machine interactions.

• The decline of automated trading systems.

• The shift from machine-to-machine to person-to-person interactions.

How are modern traders compared to those in the 90s?

• They are compared to fighter jet pilots.

• They are compared to traditional craftsmen.

• They are compared to chess players.

• They are compared to marathon runners.

What is one optimistic view of AI in trading?

• AI will allow humans to focus on high-value tasks.

• AI will reduce the number of traders needed.

• AI will completely replace human traders.

• AI will make all trading decisions without errors.

In what situations do human traders add value?

• In routine, repetitive trading scenarios.

• In unique situations that require logic and historical data analysis.

• In scenarios where market trends are predictable.

• In situations where machines have complete data.

What challenge did algorithms face during the COVID-19 pandemic?

• They had never encountered a pandemic before.

• They predicted the market would close permanently.

• They had complete historical data to rely on.

• They were unable to process any data.