Quantum computing processing power could cut AI model training exponentially, and increase the speed of informed decision making dramatically. Transistors and core processing power has rapidly evolved over the past 15 years allowing greater amounts of data to be processed in shorter periods of time. HFT allows institutions to dramatically evolve the strategy and scale by which they operate in the normal course of the day. As such, the volume of trades can increase exponentially to accommodate a multitude of data that is constantly streaming and correlated: Binary data processing in traditional form has its limitations based on compute power, internet bandwidth, and energy requirements.
The volatility of the existing models and market affects the predictive capabilities of the value of future assets. Artificial Intelligence and Quantum Computing may have the answers. Cloud computing provides the ability to store and correlate relevant pieces of data, and update at regular intervals based on new incoming data streams. Technology like knowledge catalogs and cognitive search platforms would allow institutions and investors to define collections from which they can create connections and search based on context rather than just keywords. Additionally, by using natural language processing applications can produce insight on the sentiment and relevancy of streaming data to allow investors or the HFT to make more informed decisions.
Quantum computers use quantum bits (qubits) to superimpose or entangle bits onto subatomic particles. Superposition then allows that particle to maintain multiple states of data at once. This processing power could enable immensely rapid transmission of data, cut down on AI model training exponentially, and increase the speed of informed decision making dramatically. With this ability to solve optimization challenges at an increased rate, HFT would be able to make on-the-fly portfolio adjustments to maximize cash flow while minimizing risk. To give further context, see our previous article on quantum computing.
Corner the Market: How AI and Quantum Computing will Revolutionize the Speed and Scale of Trading