Dna, Cryptology, Speech Communication Recognition, Together With Trading

There is an interesting New York Times article on a mathematician too cryptologist who used to operate for the wildly successful hedge fund Renaissance Technologies too is forthwith famous for decoding DNA's. This article caught my eyes because quite a few of my erstwhile colleagues from the speech communication recognition question grouping at IBM likewise went over to Renaissance equally researchers too portfolio managers. Renaissance is an extraordinary hedge fund inward Long Island that has an average annual provide of 35% since 1989, after charging 5% administration fee too 44% incentive fee. They profess to hire exclusively scientists, engineers too mathematicians amongst equally piddling background inward finance equally possible. They started off trading futures, simply has since too so diversified into equities models, too is artificial intelligence may intend that I am beingness inconsistent here, equally I was less than enthusiastic virtually the application of that bailiwick to trading. There is, however, quite a big departure betwixt data theory too artificial intelligence. The erstwhile is characterized past times sophisticated theory amongst really few parameters, the latter, unproblematic theory amongst a lot of parameters.)

There is i published trading model that is based squarely on question inward data theory. It is called Universal Portfolios, created past times Stanford data theorist Prof. Thomas Cover. It is an elegant too quite intuitive model, simply I don't know how good it performs nether realistic conditions. I promise to write virtually about of my question on this too a related degree of models inward a time to come article.

Further reading:

Cover, Thomas M. too Thomas, Joy A. (1991), Elements of Information Theory. John Wiley & Sons, Inc.