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By Beverly Chandler, Opalesque London:

The first day of May, 2009 saw Titian Global launch its first investment program based on artificial intelligence and machine learning based trading systems, designed to identify price patterns and predict short term market movements.

Managing Partner, Alessandro Di Soccio explains: "The program predicts the short term price behaviour of futures markets. It trades 20 markets across equities, bonds, currencies and commodities with a 24 hour trading horizon."

The 20 markets traded are distinguished by two main characteristics: they are highly liquid and offer near continuous trading.

The accuracy of Titian's systems is measured in a number of ways but the easiest is a simple record of the number of positive days achieved out of the total number of days traded.  Positive days come out at 58%, leading to 74% positive months. "The program consists of 400 self learning, adaptive, market specific trading systems" explains Di Soccio. "The life cycle of each system is only 24 hours, since each system autonomously determines daily its own predictive algorithms, parameters and data inputs. Today 20 markets are traded with 400 trading systems and tomorrow a new set of 400 systems is automatically generated. This means 2000 systems a week, 8000 a month."

"Trend following systems are based on ideas coded into fixed rules, with fixed parameters and fixed data inputs" says Di Soccio. "Unfortunately markets change and evolve w......................

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