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by paulpauper 1154 days ago
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.

1 comments

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.