G4S, Lloyds, Burberry: How artificial intelligence can warn of insider trading before a stock hits …

Machine learning algorithms can warn investors when a particular stock is going to fall by predicting likely instances of insider trading (when information that’s not in the public domain is capitalised upon by people in the know). This can be done by analysing previous occasions when company insiders did apparently well-timed trades in their own stocks, and recognising these patterns. This might seem deceptively simple, but it isn’t, explains Tom Doris, CEO of OTAS Technologies, a London-based market analytics and machine learning trading system. While company executives are required to file details of transactions in their company’s stock, most insider trades are few and far between: a needle in a haystack. Doris told IBTimes UK: “We look at all of the insiders, the directors of companies, and we see all…


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