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Ask HN: What are the most important problems in your industry?

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Re: Ask HN: What are the most important problems in your industry?

#2
Intersection of trading and data mining.

I've said this a few times but we're going through a growth period like AAA video games have over the past 20 years.

I used to be that 2 guys could make a video game, then it went to 10, then 50, now its around 200 from what I've last heard.

Hedge funds are going through a similar shift.

It used to be that one person could manage data cleaning, and algo generation for a fund.

Then cleaning got split out into its own job.

Then the number of data streams exploded growing by a couple orders of magnitude.

Then the data types diverged so that each new data stream needs its own special cleaning, and normalization and even data storage, ie some data isn't suitable for a sql or non sql database storage, like satellite images.

Nowadays a typical algo fund might make use of 100 different algos for trading, each of which has 20 different inputs, some real time, some updated irregularly.

It takes those signals and weights them to come up with a trading signal, which then gets mixed with a portfolio balancing signals and risk signals.

It can be tough to disentangle each individual signal from the algos themselves so even things like detecting if a signal still has alpha generating abilities is tough.

You can have 10 people just back testing signals and monitoring risk levels.

And the growth of data and data sources isn't slowing down.

This is good if you are one of the larger players, see Virtu buying out competitor KCG, who previously ate competitor Knight Capital, yes that fund with the huge blowup, but not so great news if you want to remain a small, person wise, fund.

Not sure how to run a quant fund anymore with only 4 people. Not sure anything an be done about.

Re: Ask HN: What are the most important problems in your industry?

#3
I may be reading between the lines too much and I apologize if I am...

But every few months (weeks?) I see a post by a founder-type essentially trying to mine the Hacker News collective brains for startup ideas. It doesn't work that way. The best startups are ones that solve a pain point you yourself have experienced.

The idea of a savior who comes in and solving the major problems of an industry they have never worked in is not a myth but close to one. (Elon Musk being a notable exception with cars and space flight... but he has the capital to attract domain experts to fill in the gaps)

I'd point out the problems in my industry except I am actively working to solve them :)

With that said. Don't let a "know-it-all" on HN (myself included) tell you what to do. If you want to tackle a hard problem in an industry you don't have experience in, please do. You might be the next Elon Musk, I don't know you so I don't know.

If that wasn't your goal with this question... again I apologize.

Re: Ask HN: What are the most important problems in your industry?

#5

I may be reading between the lines too much and I apologize if I am... But every few months (weeks?) I see a post by a founder-type essentially trying to mine the Hacker News collective brains for startup ideas. It doesn't work that way. The best startups are ones that solve a pain point you yourself have experienced. The idea of a savior who comes in and solving the major problems of an industry they have never work…

I'm not sure what harm it does though - answers like the one from chollida1 are interesting regardless of whether they could become a startup or not.

Re: Ask HN: What are the most important problems in your industry?

#6

I may be reading between the lines too much and I apologize if I am... But every few months (weeks?) I see a post by a founder-type essentially trying to mine the Hacker News collective brains for startup ideas. It doesn't work that way. The best startups are ones that solve a pain point you yourself have experienced. The idea of a savior who comes in and solving the major problems of an industry they have never work…

> The best startups are ones that have solved a pain point you yourself have experience.

Yet there is zero money in writing development tools :(

Re: Ask HN: What are the most important problems in your industry?

#7
post #6

I may be reading between the lines too much and I apologize if I am... But every few months (weeks?) I see a post by a founder-type essentially trying to mine the Hacker News collective brains for startup ideas. It doesn't work that way. The best startups are ones that solve a pain point you yourself have experienced. The idea of a savior who comes in and solving the major problems of an industry they have never work…

> The best startups are ones that have solved a pain point you yourself have experience. Yet there is zero money in writing development tools :(

Have you heard of companies like Atlassian and Gitlab?

Re: Ask HN: What are the most important problems in your industry?

#8
Mobile phone repairs - lack of education and the ability to access quality replacement parts.

You might think that there's no shortage of phone Repairer's out there and your right but you can bet that 90% of them are self taught or eventually taught by someone.

Considering the amount of important information we store in phones and the price of the devices it has now become more important to ensure that your phone repairer knows what they are doing and of course has a reliable supplier

Re: Ask HN: What are the most important problems in your industry?

#9

Intersection of trading and data mining. I've said this a few times but we're going through a growth period like AAA video games have over the past 20 years. I used to be that 2 guys could make a video game, then it went to 10, then 50, now its around 200 from what I've last heard. Hedge funds are going through a similar shift. It used to be that one person could manage data cleaning, and algo generation for a fund.…

The tools still exist to be a one man shop though. Get yourself an Interactive Brokers account, learn pyalgo, and off you go.

Re: Ask HN: What are the most important problems in your industry?

#10
I work in the games industry. There are plenty of problems to go around, but I'll pick just one:

Discoverability

In the "good old days" where 2 people could make a video game, odds are that just shipping something guaranteed you'd make money. But that's no the case anymore now that 1000+ apps come out every day on iOS / Google Play. Of course most of those are crap. But you could be making a great game that caters well to a particular audience or niche, and yet you might still fail just because no one can find it or really just be aware of its existence.

The "simple" answer to this is marketing. Hustle your way to some visibility, partner up with some publishers or some platforms holders, and get as many eyeballs in front of your game as possible. However this effort is very close to being "zero-sum." Either you win and get your promo art banner at the top of the app store, or someone else does, but you can't both get it. It's less obvious when it comes to PR and having articles or game review written about you, but it's still there: with so much noise now on the internet, it's hard to generate a meaningful signal.

The harder solution is being tackled by the app stores themselves. Steam, iOS, etc. have all been improving the way games are presented in their stores. There's more focus on specific genre features, more flash sales, more suggestions based on what you already play. It's a decent effort but I don't think it's enough yet.

What can we do about it? Not sure. Algorithms that try to discover what you might like based on your previous purchases are nice and all, but most of my favourite gaming experiences were surprises that came out of genres I didn't expect (e.g. Rocket League), so this can only go so far.

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