Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Building GenAI Applications. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

The Long Road to Machine Intelligence: From Early AI Winters to Modern Neural Networks

1 min read

So, you’ve probably heard of AI – machines that can “think” or “learn.” But did you know it wasn’t always this advanced? The story of AI is full of excitement, disappointment, and then big comebacks. Let’s walk through it together.

1. How It All Started

Back in 1956, scientists started using the term Artificial Intelligence. A couple of years later, in 1958, Frank Rosenblatt built something called the Perceptron.

Think of it like a baby brain for computers. It could look at shapes and say, “Oh, that’s a triangle” or “That’s a rectangle.” People went crazy, thinking computers would soon walk, talk, and act like humans.

But reality hit. In 1969, two scientists – Marvin Minsky and Seymour Papert – showed that the Perceptron had serious limits. Funding stopped, interest died down, and the first “AI winter” began. Basically, AI went into hibernation.

2. AI Comes Back in the 1980s

Fast forward to the 1980s. Researchers started giving AI another chance. At Carnegie Mellon University, they built a small self-driving car called ALVINN.

How did it work? A human driver trained it by showing the car images of the road. ALVINN then learned how to steer by itself. Sure, the images were tiny (only 30×32 pixels), but hey, it was the start of self-driving tech!

3. The Secret Sauce: Data

In the 2000s, most scientists were busy polishing algorithms. But Stanford professor Fei-Fei Li had a different thought: “Maybe AI just needs more data to learn.”

So she created ImageNet, a massive collection of 1.2 million pictures, each labeled by humans. Starting in 2010, there was a big competition where AI programs had to identify and classify these images – like telling apart different dog breeds. This turned into a gold standard for testing AI.

AlexNet and the Dawn of Deep Learning

A major breakthrough occurred in 2012 with the introduction of AlexNet, a deep neural network from the University of Toronto. With its eight layers and 500,000 neurons, AlexNet significantly outperformed its competitors. The network’s success was largely attributed to its sheer size and depth, which required immense computational power for training. The team behind AlexNet pioneered the use of Graphics Processing Units (GPUs) to handle the 700 million individual math operations needed to process a single image.

The success of AlexNet sparked a new era in AI. The top-5 error rate in the ImageNet competition plummeted in the following years, and by 2015, the winning neural network, ResNet, which had 100 layers of neurons, surpassed human performance in image recognition.

The evolution from the simple Perceptron to the complex architecture of ResNet illustrates the incredible progress in AI. This journey highlights the critical interplay between algorithmic innovation, computational power, and the availability of massive datasets, paving the way for the sophisticated AI we see today.

Rajandran R Creator of OpenAlgo - OpenSource Algo Trading framework for Indian Traders. Building GenAI Applications. Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Building Algo Platforms, Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in

FinBERT and Latent Space: What Every Trader Needs to…

Discover how FinBERT AI analyzes financial news with 85% accuracy. Learn latent space visualization, PCA, and why fine-tuned models outperform originals.
Rajandran R
14 min read

Leave a Reply

Get Notifications, Alerts on Market Updates, Trading Tools, Automation & More