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I suppose this is the argument made for closed source over open source software as well. There are benefits in opening an algorithm since by far the current al
by freddealmeida 12y ago
I suppose this is the argument made for closed source over open source software as well. There are benefits in opening an algorithm since by far the current algorithm is not optimal. Of course, if you believe the market assumes all available information in pricing, then sharing an algorithm shouldn't really have an effect except for small rent extraction.
- IgorPartola 12y agoI don't know if that's a fair comparison. You can open source just about anything, because in software the execution matters a whole lot more than the core of the software in all cases (to a first approximation). For example, if Netflix open sourced their recommendation algorithm, do you think they'd go out of business because another movie streaming service would pop up overnight and take over? No, Netflix has name recognition, etc. On the other hand, there is very little barrier to entry if you have a winning stock trading algorithm. All you really need is money, which is easy to acquire (for this purpose at least).