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
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.