
Man Vs. Machine On Wall Street - jaydub
http://www.forbes.com/2008/11/22/supercomputers-biology-quants-biz-wall-cx_mh_1124quants_print.html
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utsmokingaces
The Financial market is not a complex calculation. It is a derivative of human
emotion and psychology. In the end humans will try to manipulate the
computers. The best investors such as buffet and soros are not math whizes.
They take qualitative and quantitive approach to their investment.

Sounds like a major fail to me.

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Dilpil
Tell that to Jim Simons, math PHD and multi billionaire founder of Renaissance
Technologies- a hedge fund based entirely on computer trading. There is
certainly room in finance for quants.

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kingkongrevenge
Probably lucky outliers.

Any data mining driven approach that shows good returns is arbitraged out of
existence almost immediately, unless it's niche and thus unscalable to a
larger fund. All the blackbox systems end up doing pretty much the same thing
and getting low returns. The markets are simply too dynamic for a pure data
and algorithms system to work. One needs to use theory to win, and the guy
picking the theories in the program is exactly the same thing as a manager in
the first place.

The only way to get rich from a naive blackbox is to twist the risk knob up to
11, which always goes badly eventually.

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cmars232
With automation, markets become exploitable.

