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Essentially, he made a more complicated version of a moving average quant system. The more interesting part was breeding top-performing rats to see if they are
by steveplace 18y ago
Essentially, he made a more complicated version of a moving average quant system.
The more interesting part was breeding top-performing rats to see if they are able to improve their "trading" genetically. You can do this exact same thing using evolutionary algorithms with trading systems that help you to adapt to the market.
Quant finance is fun when you're doing it for yourself, not a bank.
- cool-RR 18y agoI'm not sure that what you say is right. What makes you think that it's the same?
- steveplace 18y agoHe assigned pitches to how fast the market was moving, and trained the rats on those pitches. The speed of the market can be measured using averages.
- cool-RR 18y agoObviously a positive return cannot be made from moving averages. But how do you know that the rats don't develop some sort of intuition that can make a positive return?
- steveplace 18y agoFirst, moving averages do play a role in some (profitable) quant systems. Second, I never said that the rats couldn't create a positive return, but you could model the rats behavior quantitatively and develop a system, but that's just bringing it back full circle.