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ChristianKl comments on Open Thread, Jul. 6 - Jul. 12, 2015 - Less Wrong Discussion

5 Post author: MrMind 06 July 2015 07:31AM

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Comment author: Clarity 08 July 2015 08:44:59AM *  2 points [-]

One quantitative finance fund to rule them all?

Machine learning specialists outperform prediction markets and subject matter experts Yet, the quantitative finance industry eagerly laps up former asx employees who supposedly have privellaged knowledge of exchange architecture (they don’t, it’s all published anyway and that which isn’t is privy to freedom of information requests), particularly high frequency trading firms.

I suspect this practice may have more to do with regulatory capture instead. Conspiracy theory aside and assuming there isn’t a meritious benefit to trading firms for such unethical active management, could one expect the merit driven machine learning algorithmic trading platform Kaggle when it sufficiently scales to compete against high frequency trading firms, value investors, proprietary investment banks and day traders simultaneously (is that all the investor classes?)

Comment author: ChristianKl 10 July 2015 03:55:29PM 2 points [-]

High frequency trading is not about having complex machine learning algorithms. It's about computers making decisions in very short amounts of time.

Comment author: Lumifer 10 July 2015 04:17:45PM 2 points [-]

Actually, it's about both. Low latency without a good strategy will not help you.