More than data is needed for insights
If you're building a house, what's important? You need an architect to design the house alongside civil engineers. You need builders to, well, build the house. Of course, you could try your hand at some of these tasks, but it's going to be a very steep learning curve. It's also one thing trying your hand with a bit of DIY, and quite another to build a house. I'm writing this from the vantage point of someone who is truly useless at DIY. For years I could stare up at my ceiling and see what a mess I made of painting my own ceiling (this is what an estate agent would call character in a property).
Suffice to say, next time it came for refresh of my living room, a professional painter was employed. We also need to spend a considerable amount of money on building materials, as well as a plot of land and we need to navigate planning permission too. In short the whole process is non-trivial, but this is essentially a very simplified summary of what a developer does.
We can reuse this analogy to think about how investors make their trading decisions in a quantitative environment. We can think of the building materials as data, the raw input into our decision making process....
I am a speaker, author, educator and thought leader of the use of Generative AI and AI in the financial services and the broader economy.
3 年Absolutely agree.
Silicon Valley VCs-Trillion $ Wall Street Hedge Funds-Pentagon Joint Chiefs-Boards-CEOs Leader: MIT-Princeton AI-Quantum Finance Faculty-SME: R&D Impact among AI-Quant Finance Nobel Laureates: NSF-UN HQ Advisor
3 年Advancing the World Beyond "No data, no insights!" Since 1993: Enjoy reading your columns, however take a different perspective coming from #Fin #Tech #Risk view with R&D recognized for impact among others such as #BlackScholes. Source: https://lnkd.in/e6EhZtub : #Imagination is more important than #knowledge. - #AlbertEinstein: For those interested in "data", Einstein's original #interview 'What Life Means to Einstein' is accessible from: https://lnkd.in/esk8PEp : In fact, it can be contrarily said that in an era of #MisInformation and #DataSmog, #Imagination & #Intuition are even more critical than #data for #innovation. I would refer to the insightful speech that ex Goldman Sachs Head of #Quant #Strategy & #Columbia's Head of #FinancialEngineering #EmanuelDerman delivered at NYC #Bloomberg HQ: On #FischerBlack: #Intuition is a Merging of the Understander with the Understood, NYC. November 24 2009: Source: https://lnkd.in/gcp_yHe : World has turned full-circle since 1993, when we rejected #IT obsession with #Data #Management to #DataScience being "sexy" and #BigData to #LightData to #RightData and still being unable to Manage #Change, #Uncertainty & #Complexity as we pioneered: https://lnkd.in/e6EhZtub