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The Unreasonable and Unbearable Fluffiness of Deep Learning Models

""although neural networks only work well for an exponentially tiny fraction of all possible inputs, the laws of physics are such that the data sets we care about for machine learning are also drawn from an exponentially tiny fraction of all imaginable data sets..."

Professor Max Tagmark arXiv:160808225 (2017)

 

Like obedient and obsequious slaves, Deep Learning Models (DLM) always produces an answer, regardless of how inappropriate or irrelavent the input data ...

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Consulting Boutique Firms

While no self-respecting trader would ever want to be found shilling for consulting shops, tough times, call for imaginative and creative hacks.  After all, consulting should be natural for traders.  You get to run your mouth off about any subject (that you only started reading about the night before), and bailing out before any P&L shows up.   Traders can do consulting in their sleep.  The only known drawbacks are death from boredom. puny paychecks, cursing senselessly at slow colleagues, yelling until foaming in the mouth at even slower clients,  etc...

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Financial Sunlight

It is said that sunlight is the best disinfectant - particularly where corruption is suspected.  Nowadays, nowhere this is more evident than in the financial industry and in the so-called investment and dealer-broker banking sectors.

Vast amounts of financial data are reported to the regulatory agencies by the financial services industry at various frequencies.  Ostensibly the purpose of which is to enable the said agencies to better regulate and monitor the activities of the industry participants.  However, as the financial crises of 2009 revealed, neither...

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So much of High Frequency Trading is about selecting the right vendors

There is no way any HFT startup is going to develop all the technologies needed to successfully trade in today's markets, in house.  So much of success depends on selecting the right vendors at the right entry prices.

Nowhere is this problem more acute than the institutional FX trading market.  It is as fragmented of a market as you can find and also is the fastest of all asset classes.  Furthermore, from the perspective of an HFT startup, selecting best in class vendor technologies is vital since,  often times, they can't afford full suite solutions offered by...

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The Algorithmic Love

Nerds are not known for the carnal abilities let alone seduction prowes, but according to Bloomberg News - on a slow news day, of course - they know the secret love potion and the proof is in their matching algorithms!