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Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

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Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#71

Post by cortesoft »

bogomipz wrote: post #67
reverend_gonzo wrote: post #55

Earlier quoted context omitted.

Hedge funds have customers because the majority of them don't beat the market in the long run. If a hedge fund is consistently highly profitable, they stop taking customers. For example, see RenTec's Medallion Fund, which is only open to its own employees.

>"Hedge funds have customers because the majority of them don't beat the market in the long run" Interesting do you have any data to look at regarding that? How do they justify their 2 and 20 then?

Well, originally the purpose was to 'hedge' your other investments. Typically, hedge funds invested in ways that would do well when the rest of the market struggled. Even if they don't best the market over the long run, they could be worthwhile investments to protect your wealth during ,Arlen downturns.

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#72

Post by [deleted] »

bogomipz wrote: post #67
reverend_gonzo wrote: post #55

Earlier quoted context omitted.

Hedge funds have customers because the majority of them don't beat the market in the long run. If a hedge fund is consistently highly profitable, they stop taking customers. For example, see RenTec's Medallion Fund, which is only open to its own employees.

>"Hedge funds have customers because the majority of them don't beat the market in the long run" Interesting do you have any data to look at regarding that? How do they justify their 2 and 20 then?

[deleted]

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#73

Post by lutusp »

"Silicon Valley Hedge Fund Takes on Wall Street with AI Trader"

Another generic, contentless article using the standard outline: (name) takes on Wall Street with (scheme).

Percentage of traders who beat the market average: 50%.

Traders to the left of the average who assign the outcome of bad luck: 100%.

Traders to the right of the average who assign the outcome to a secret method and/or genius: 100%.

An unscupulous broker can "prove" to you that he is a stock picking genius, by mailing you correct predictions of the market in advance of the outcomes for, say, six months, then ask you to assign your assets over to him -- but it's a scam, a trick. The explanation: http://arachnoid.com/equities_myths/#Miracle_Man

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#74

Post by kybernetikos »

65827 wrote: post #29
mjpuser wrote: post #13

I just checked out glassdoor, and it seems like they don't know what their product should be since top execs don't want to agree on anything. > We have too many executives for a company this size - most don't add much value except for fighting with each other and politicizing issues. The CEO lives in HongKong and remotely manages this crew of distrusting, non-supportive and close-minded execs. The HR function is prac…

I mean sure, but take glassdoor with a huge grain of salt, people make up crap to post on there all the time.

I've also worked places that were pretty effective at getting glassdoor to take down the negative reviews. They could always find some sort of explanation for how the negative ones didn't meet the terms and conditions and glassdoor seemed relatively ok with taking them down.

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#75

Post by kybernetikos »

digler999 wrote: post #58
SEJeff wrote: post #21

The clickbait headline is amusing, but "Wall Street" has been doing this > 10 years. I'm genuinely not sure if they're trying to "beat wall street" or simply be yet another quantitative hedge fund that happens to use machine learning and neural networks to power their strategies. Most real electronic trading firms are putting those algorithms in hardware. Source: Have worked in HFT the past 10 years.

> Source: Have worked in HFT the past 10 years. OT question: how would I get into acquiring market data to try my own backtesting strategies ? Is there anyway to "get in" without putting up $5k + for the data ? I'm not green to this, I worked at a prop shop for a year writing market feed handlers. I know the dangers of overfitting data and how hard it is to make money (so I'm not deluded by a fantasy). I want to star…

Not a personal recommendation as I haven't used it, but you might find quantopian.com fun if you've got any python.

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#76

Post by hendzen »

SEJeff wrote: post #46
Ntrails wrote: post #45

Earlier quoted context omitted.

I'd rather just try really hard to get people to understand that active trading is negative sum, and that unless (As a mom and pop investor) you are properly bench-marking against a relevant index - you're just lying to yourself. Sure HFT guys are faster than you to get short term signals and make money on the micro scale - but even ignoring that way too many people are thinking they're beating the market and they re…

You just nailed it! I work for a very large HFT and my portfolio for my 401k and extra retirement (in the market) is primarily low cost / fee vanguard index funds. You really can't beat a FPGA with tick to trade times in the milliseconds. Your optical nerve likely hasn't even processed a number changing yet.

I'm assuming you mean nanoseconds?

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#77

Post by hendzen »

digler999 wrote: post #58
SEJeff wrote: post #21

The clickbait headline is amusing, but "Wall Street" has been doing this > 10 years. I'm genuinely not sure if they're trying to "beat wall street" or simply be yet another quantitative hedge fund that happens to use machine learning and neural networks to power their strategies. Most real electronic trading firms are putting those algorithms in hardware. Source: Have worked in HFT the past 10 years.

> Source: Have worked in HFT the past 10 years. OT question: how would I get into acquiring market data to try my own backtesting strategies ? Is there anyway to "get in" without putting up $5k + for the data ? I'm not green to this, I worked at a prop shop for a year writing market feed handlers. I know the dangers of overfitting data and how hard it is to make money (so I'm not deluded by a fantasy). I want to star…

You are not going to get usable intraday data for free. Best bet is to pony up for NYSE TAQ.

http://www.nyxdata.com/Data-Products/Daily-TAQ

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#78

Post by lutusp »

pdog wrote: post #9

> Thanks to increases in computing power, Sentient can squeeze 1,800 simulated trading days into a few minutes. How is it possible to generate seven years of convincing sample data from historical trading data without overfitting your models?

> How is it possible to generate seven years of convincing sample data from historical trading data without overfitting your models?

Simple -- create a large set of models, each using different selected parameters, run them against the market, and pick the outcomes that make the scheme look good. It's called "data mining."

A famous "psychic," who shall go nameless, made a career of appearing with a sealed, dated, registered letter, opening it, and proving that she had correctly predicted the outcome of an election / horse race / other event in advance. She was always right, and the registered letters were real and were mailed before the event to be predicted. How did she do it? She mailed herself more than one registered letter for each event. People are sooo ... credulous.

Re: Silicon Valley Hedge Fund Takes on Wall Street with AI Trader

#80

Post by segmondy »

reverend_gonzo wrote: post #55
bogomipz wrote: post #48

Earlier quoted context omitted.

>" Trading is among one of the few industries out there where you don't need to have anything like a customer." Trading yes but a hedge fund or any fund really implies customers no?

Hedge funds have customers because the majority of them don't beat the market in the long run. If a hedge fund is consistently highly profitable, they stop taking customers. For example, see RenTec's Medallion Fund, which is only open to its own employees.

Exactly, if they can't extract their wealth from the market, they extract it from their customers.
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