These models are argued to contain hidden models of the data they represent, and can pick up on patterns with one-shot or few-shot samples
Let's recall that Bob Mercer, Jim Simons made their billions off of trading options with NLP based hidden markov models, beating everyone on Wall St for the last two decades.
Just Jim Simon's own words, in the book The Man Who Solved The Market. And the fact that they hired NLP engineers explicitly.
My guess is it would be momentum based and capturing short term fluctuations in the market. My guess is they would train a markov decision policy on sequences of moves, and try to predict the next one, and trade on it with some sophisticated risk management.
Comments
It's almost certainly expected.
These models are argued to contain hidden models of the data they represent, and can pick up on patterns with one-shot or few-shot samples
Let's recall that Bob Mercer, Jim Simons made their billions off of trading options with NLP based hidden markov models, beating everyone on Wall St for the last two decades.
ChatGPT is an easy entry to this
hidden markov models
people keep bringing this up. What evidence is there that this is his firm's method? And if so, how would it work.
Just Jim Simon's own words, in the book The Man Who Solved The Market. And the fact that they hired NLP engineers explicitly.
My guess is it would be momentum based and capturing short term fluctuations in the market. My guess is they would train a markov decision policy on sequences of moves, and try to predict the next one, and trade on it with some sophisticated risk management.