Books Generative AI for Trading and Asset Management Book by Ernest Chan and Hamlet Jesse Medina Ruiz

"Generative AI for Trading and Asset Management" by Ernest Chan and Hamlet Jesse Medina Ruiz is an expert guide that explores how generative AI has become a transformative tool in asset management, especially trading. The book explains practical applications of various AI techniques—including unsupervised learning, supervised learning, reinforcement learning, and large language models—to enhance the productivity of both algorithmic and discretionary traders.

Key themes include:

Using AI to analyze vast datasets, identify complex patterns, and suggest sophisticated trading strategies.

Applying AI to improve ideation, signal generation, backtesting, risk management, and portfolio optimization.

Comparing different AI models such as tree-based models versus neural networks, along with regularization methods to improve out-of-sample performance.

Employing generative models to address challenges like data scarcity and data augmentation for better training of financial models.

Exploiting large language models to process and translate Federal Reserve Chair speeches into real-time trading signals.

Strategies for efficient deployment of large AI models in production environments, including model pruning and quantization.

Written by Hamlet Medina, Chief Data Scientist at Criteo, and Ernest Chan, founder of QTS Capital Management and Predictnow.ai, the book serves as a comprehensive resource for asset managers aiming to harness cutting-edge AI to optimize trading strategies and asset management decisions.

It is highly relevant for traders and asset managers looking to integrate AI-driven methods to boost trading effectiveness, risk management, and portfolio performance in modern financial markets.

The book was published in 2025 and includes technical depth combined with practical insights for applying generative AI in finance.