

The obsolescence of Hedge Funds & the rise of digital agents - ozymondias
http://learningann.wordpress.com/2014/03/09/the-obsolescence-of-hedge-funds-the-rise-of-digital-agents/

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spikels
Neural nets are a useful technology but they are not magic. I doubt they will
play much of a role in any effort to improve financial markets.

First, neural nets have been used for decades by various financial market
participants, in particular hedge funds, and there impact has been very
modest. Second, they are hard to understand thus unlikely to be favored most
governments, regulators or even market participants in the unlikely event
there was some agreement for global market reform. Lastly, there is no
evidence that neural nets have any real advantage in valuing assets over
existing techniques. If there were they would be more widely used for that
purpose.

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ozymondias
the Neural Network as a fundamental device is only as powerful as the person
who designed it.

However you could add every single possible training data segment in as an
input parameter, however if you don't have the horsepower and fast RAM storage
to process the information then it will take an extremely long amount of time.

with the advent of GPGPU technologies, neural nets are resurfacing as the goto
machine learning algorithm.

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spikels
Yes they are great and all the things you mention are super cool but since
neural nets are only as good as the humans that design them we can't expect
them to solve fundamental problems like market failures. For example would
better weapons prevent wars? Maybe but not always and not forever?

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ozymondias
You make good points, however it wouldn't be one or two networks that would
solve such an incredibly complex problem.

In my next post I'll try and answer this question, I still don't see eye to
eye with you on this as I feel that a fairly well abstracted net structure
could solve this.

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ozymondias
Anyone interested in my new blog post? I'm currently looking for work and this
blog I've made is documenting the work I've done in trying to make my self
more employable.

