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What are the great successes of machine learning in finance?
by clircle 6y ago
What are the great successes of machine learning in finance?
- Cd00d 6y agoGreat question! Does Renaissance Technologies count as ML? I honestly don't know where the line between quantitative/algorithmic and ML is - I suspect it's blurry.
- cung 6y agoIs there any proof of Renaissance not being just insider trading or a Ponzi scheme?
- sooheon 6y agoDoes "Ponzi scheme" just mean "bad finance thing" now? It is impossible by definition for a fund that hasn't had inflows for 30 years to be a Ponzi scheme.
- cung 6y agoThey could, for example, be buying early stage startups cheap, sell it to a friend for 3x, who sells to a VC fund for 3x, which then sells it to the public by showing huge growth. No inflows, old investors get paid with money from new retail investors and retail investors are left with a hot potato. A Ponzi scheme.
- stillworks 6y agoIt cannot potentially be Ponzi Scheme as their investors didn’t end up losing money.(The 0-sum was in the market participation) The kind of returns RenTech took, it would have to be a highly elaborate insider trading and why would a bunch of scientists want to waste their time on that ? The only thing “wonky” about RenTech was Bob Mercer’s personal political views but despite that I would still consider Bob Mercer to be a very intelligent/scientific person.
- sooheon 6y agoThey gather data and use it to make data driven statistical predictions -- of course they are ML!
- keithalewis 6y agoWhy limit the question to finance?
- arthurcolle 6y agoMaybe because the article is titled "Introduction to Machine Learning for Finance" ?
- andyxor 6y agoso far no ML system created a ponzi scheme
- deleted 6y ago[deleted]
- dhruva_k 6y agoI think ML, regardless of the industry application, will always be a victim of the garbage in-garbage out mechanism. Those that are trying to build neural networks to predict tomorrow's price based on the last 1 month are never going to get anywhere because the markets are just too nuanced for this. I'm constantly looking at this from the view that I'm not looking to build an ML model that is going to give me a direct prediction of future prices, but instead to break this down into different components. If I feed a bunch of stats about a country, can an algo return a figure for the overall health of that economy, for example.