Since the birth of chatGPT, some people around me are excited and some people are anxious. What should we really do? I think that in fact, many seniors in the investment industry have explored a lot before, which also pointed out the direction for us. Take Simmons as an example. The "Medallion" fund he made when he was at the Renaissance Fund was actually the "man who beat the market" by applying machine learning and multi-factor models.

Combined with my own investment practice, I have the following two points of thinking:

1- Improve your operating system performance and bandwidth

In the field of investment, it refers to the depth of the investment system and the breadth of the target. 【One horizontal and one vertical】

2. Study how to use AI to help yourself solve practical problems, so that you can spend more time improving your operating system.

In the field of investment, for example, using AI or quantitative tools to assist in-depth fields to make α [this point is relatively mature for domestic and foreign quantitative funds and has a huge future space]

The first path is the long-term direction, with or without AI, we have to do it.

The second way is to be flexible and adjust according to the situation.

As far as my own investment career from amateur to professional is concerned, I spent a lot of time on the first path before, and I will focus more on a specific investment tool every year, such as options this year. Now I think I should spend more time researching the second road, and the two roads work together in parallel, hoping to find a broader investment path.

#ai #chatgpt #Investing

Bitcoin, the world’s largest cryptocurrency, experienced a price correction of 3.6% to $26,900 after the United States Commodity Futures Trading Commission (CFTC) sued Binance and CEO Changpeng Zhao on March 27. According to metrics for Bitcoin derivatives, the CFTC’s recent action against Binance does not appear to have had any impact on professional traders.

BTC Futures Market Remains Healthy Despite CFTC’s Legal Action

The quarterly Bitcoin futures market, which is well-liked by whales and arbitrage desks, is presently trading at a slight premium to spot markets, implying that sellers are demanding a higher price to postpone settlement for a longer period of time. A healthy futures market should trade at a 5%–10% annualized premium, known as contango, which is currently not unique to crypto markets.

The Binance news had no effect on the Bitcoin futures premium, despite the fact that the exchange holds 33% of the $11.2 billion in open interest. This suggests that there was no panic selling or use of leveraged futures contracts, which would have quickly moved the indicator to zero or even negative.

BTC Options Traders Remain Slightly Optimistic

The 25% delta skew, which indicates when market makers and arbitrage desks are overcharging for upside or downside protection, is currently at -5. This demonstrates that the Binance news is unimportant because the protective put options are trading at a slight discount. Additionally, the legal action taken by the CFTC had no impact on the 25% skew, showing that market makers and whales are not factoring in any significant changes to the market structure.

Conclusion: Crypto Investors Should Remain Cautiously Optimistic

Bitcoin’s price correction in the wake of the CFTC’s lawsuit against Binance has not had a significant impact on the cryptocurrency’s derivatives markets. The impact of the lawsuit on Binance and its CEO is still uncertain, but market indicators suggest that professional traders are not panicking, so cryptocurrency investors should maintain cautious optimism. When investing in cryptocurrencies, investors should proceed cautiously and with due diligence, as always.

#bitcoin #CFTC #Binance #cryptocurrency #Investing