My answer --- quantitative analysis is pseudo-scientific BS based on one big flawed assumption --- that statistics can be used to logically predict markets.
Sound familiar?
Apply similar techniques on a broader, more generalized scale and you get AI.
cdaringe•6mo ago
More precisely, the assumption is that past indicators can predict future outcomes. Stats are just the vehicle to execute on that assumption
brudgers•6mo ago
Some hypotheses that comes to my mind:
1. A well funded player has built a statistical model of the statistical models of some hedge funds.
2. Industrial espionage.
3. Tools back-doored by developers (as seen in "Office Space").
4. Reversion to the mean (positive results of the model were largely randomness combined with a small sample size).
It's worth noting that many nation-states would have incentive and resources for hypotheses one and two.
techpineapple•6mo ago
jqpabc123•6mo ago
Sound familiar?
Apply similar techniques on a broader, more generalized scale and you get AI.
cdaringe•6mo ago
brudgers•6mo ago
1. A well funded player has built a statistical model of the statistical models of some hedge funds.
2. Industrial espionage.
3. Tools back-doored by developers (as seen in "Office Space").
4. Reversion to the mean (positive results of the model were largely randomness combined with a small sample size).
It's worth noting that many nation-states would have incentive and resources for hypotheses one and two.