Self-aware trader: a new approach to safer trading

Article English OPEN
Martínez Fernández, Javier ; Augusto, Juan Carlos ; Trombino, Giuseppe ; Seepold, Ralf ; Martinez Madrid, Natividad (2013)
  • Publisher: Graz University of Technology, Institut für Informationssysteme und Computer Medien (IICM)
  • Subject:
    acm: ComputingMilieux_COMPUTERSANDSOCIETY

Traders are required to work in the financial market with highly complex information and to perform efficiently under high levels of psychological pressure. Multiple disciplines, from programs with artificial intelligence to complex mathematical functions, are used to help traders in their effort to maximize profits. However, an essential problem not yet considered in this rapidly evolving environment is that traders are not supported to adequately manage how stress influences their decisions. This paper takes into consideration the negative influences of stress on individuals and proposes a system designed to support traders by providing them with information that can reduce the likelihood of poor decision-making. The system has been designed considering both technical and physiological aspects to make information available in a suitable way. Biometric sensors are used to collect data associated with stress, a software platform then analyses this information and displays it to the trader. The resulting system is capable of making individual traders, as well as teams of traders, self-aware of their levels of stress. The system has been tested in real environments and the results provide evidence that self-aware traders benefit from the system by reducing risky decision-making.
  • References (37)
    37 references, page 1 of 4

    [Adams, 95] Adams, S., Alkon, A., Boyce, W.T., Chesney, M., Chesterman, B., Cohen, F., Folkman, S., Kaiser, P., Tschann, J.M. and Wara, D., 1995, “Psychobiologic reactivity to stress and childhood respiratory illnesses: results of two prospective studies,” in Psychosom Med, vol.

    57, pp. 411-422.

    [Ang, 06] Ang, K.K and Quek, C., 2006, “Stock Trading Using RSPOP: A Novel Rough SetBased Neuro-Fuzzy Approach,” in IEEE Trans. on Neural Networks, vol. 17, no. 5, pp. 1301- 1315.

    [Barnea, 95] Barnea,O. and Shusterman,V., 1995, “Analysis of Skin-Temperature Variability compared to Variability of Blood Pressure and Heart Rate,” in IEEE Engineering in Medicine and Biology Society, vol. 2, pp. 766-771.

    [Bevan. 01] Bevan, N., 2001, “International Standards for HCI and Usability ,” in International Journal of Human-Computer Studies, Vol. 55(4).

    [Bollen, 10] Bollen, J., Mao, H. and Zeng, X.J, 2010. Twitter mood predicts the stock market. (2013, Mar. 21) [Braceland, 53] Braceland, F.J., 1953, “Hormones and Their Influence on the Emotions,” in Bull N Y Acad Med, vol. 29(10), pp. 765-777.

    [Broder, 00] Broder, A., 2000, “Assessing the empirical validity of the Take-the-Best heuristic as a model of human probabilistic inference,” in J. Experimental Psychology: Learning, Memory, and Cognition, vol. 26, pp. 1332-1346.

    [Broder, 03] Broder, A., 2003, “Decision making with the adaptive toolbox: Influence of environmental structure, intelligence, and working memory load,” in J. Experimental Psychology: Learning, Memory, and Cognition, vol. 29(4), pp. 611-625.

    [Coates, 08] Coates, J. M. and Herbert. J., 2008, “Endogenous steroids and financial risk taking on a London trading floor,” in Proc.National Academy of Sciences, Vol. 105, No.16, pp.

  • Metrics
    views in OpenAIRE
    views in local repository
    downloads in local repository

    The information is available from the following content providers:

    From Number Of Views Number Of Downloads
    Middlesex University Research Repository - IRUS-UK 0 334
Share - Bookmark