“Joseph Plazo to Future Traders: Your Algorithms Don’t Know Right from Wrong”
“Joseph Plazo to Future Traders: Your Algorithms Don’t Know Right from Wrong”
Blog Article
In a gathering of AI developers, analysts, and traders, Joseph Plazo—founder of the algorithmic trading firm Plazo Sullivan Roche—broke the rhythm of praise for AI with a moment of reckoning.
From Manila, where financial optimism runs high — What he offered instead was something rarely heard in AI circles: resistance.
“The machine may be faster. But are we still the ones deciding what matters?”
???? **Joseph Plazo: A Technologist Sounding the Alarm**
He’s not critiquing technology from a safe distance. His firm’s AI systems have posted a 99% win rate across key timeframes and are in use by institutional clients across Europe and Asia.
Still, he asks: what happens when efficiency erases human context?
“Optimisation is only part of the equation,” Plazo explained. “Direction, purpose—those remain human.”
He shared a case from the early days of the pandemic. One of his firm’s bots flagged a short on gold just before the U.S. Federal Reserve issued an emergency policy shift.
“We overrode it. The algorithm was correct—but profoundly unaware.”
???? **When Pausing Is a Form of Leadership**
Traders are trained to move quickly—too quickly.
“In high-volatility moments, the pause is where leadership happens.”
Plazo introduced a framework he calls **“Conviction Calculus”**—three questions that must be asked before executing an AI recommendation:
- Are we outsourcing our ethics to an equation?
- Have we cross-checked this with human knowledge—not click here just system signals?
- Will anyone say, ‘This was my call,’ or just point at the machine?
???? **The Bigger Picture: Asia’s Tech Acceleration and the Governance Gap**
Across Asia, nations are investing heavily in fintech and AI-driven innovation. From Singapore to South Korea, the push toward automation is framed as economic strategy.
But Plazo’s question cuts deeper: “Are we building intelligence without wisdom?”
He referenced multiple AI-driven losses in the past year.
“It was failure by design—because no one was allowed to stop it.”
???? **Plazo’s Vision: Trading Systems with Moral Intelligence**
Plazo is not anti-AI. He’s pro-responsibility.
His firm is developing what he calls **“narrative-integrated AI”**—models that factor in geopolitics, tone, and social context alongside market data.
“We don’t need more speed. We need better questions.”
That idea is already drawing attention.
One investor called Plazo’s talk:
“A necessary reckoning for financial technology.”
???? **The Final Warning: Crashes Don’t Always Start Loudly**
Plazo ended with a thought that may echo across boardrooms:
“The next crash won’t come from fear,” he said. “It’ll come from logic—executed too quickly, by systems no one dared to question.”
No dramatic flourish. Just clarity.
Because when machines take over the trades, someone must still own the consequences.