Babak Hodjat, co-founder of Sentient on bringing the company out of stealth mode, self writing code | Summary and Q&A

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November 25, 2015
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This Week in Startups
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Babak Hodjat, co-founder of Sentient on bringing the company out of stealth mode, self writing code

TL;DR

The content discusses a unique approach to trading using evolutionary computation, where a program writes its own code to automatically trade based on a ruleset.

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Key Insights

  • ✳️ Trading algorithms are not openly advertised, as competitive advantage and the risk of arbitrage deter traders from doing so.
  • 😒 The unique approach highlighted in the content involves the use of evolutionary computation to generate a ruleset for a program that autonomously writes its own trading code.
  • 🎮 Wistia is a preferred video hosting platform over YouTube due to its customization options, better control over metrics, and lack of distracting elements.
  • 👨‍💻 Evolutionary computation in trading involves using genetic algorithms to evolve trading strategies and refine trading code over generations.
  • 🤘 The program's ability to autonomously trade based on a ruleset is referred to as meta programming.
  • 👻 The content briefly promotes Wistia as a video hosting platform used by various well-known companies.
  • 👤 The analytics program provided by Wistia allows users to analyze viewer behavior on a user-by-user basis, including watching duration and rewatches.

Transcript

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Questions & Answers

Q: Why are trading algorithms not advertised openly?

Advertising trading algorithms would lead to the loss of competitive advantage and increase the risk of arbitrage as other traders would exploit the algorithm's patterns.

Q: What is the unique approach mentioned in the content?

Instead of pattern matching, the approach involves using evolutionary computation to generate a ruleset for a program that writes its own trading code.

Q: Why is Wistia preferred over YouTube for video hosting?

Wistia is preferred as it allows for customization, removes YouTube's ads and distracting elements, provides better control over video metrics, and integrates well with social media platforms.

Q: How does evolutionary computation work in trading?

Evolutionary computation involves the use of genetic algorithms to evolve a population of trading strategies over generations, ultimately leading to the creation of an optimal trading code.

Summary & Key Takeaways

  • The content explores why trading algorithms are not advertised due to competitive advantage and the risk of arbitrage.

  • Instead of pattern matching, the approach is to use evolutionary computation to develop a ruleset for a program that writes its own trading code.

  • Wistia, a video hosting platform, is briefly mentioned as a preferred alternative to YouTube for professional video hosting and customization.

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