Chat With Traders 052: Ernie Chan – How Quant Strategies Are Created, Scrutinized and Introduced to the Market
Dec 24, 2015
AI Snips
Chapters
Transcript
Episode notes
From Physics to Finance
- Ernie Chan transitioned from physics to machine learning and AI at IBM Research.
- This unconventional path eventually led him to finance in New York City.
Backtesting Challenges
- Backtested models often fail in live trading due to the sparse nature of financial data compared to other machine learning datasets.
- Human intuition is crucial to constrain the system and achieve sensible results.
Trading Style and Market Focus
- Focus on intraday trading for sufficient statistical significance without requiring high-frequency infrastructure.
- Diversify across markets like Forex, futures, stocks, and options.