[Music] Advanced research ideas thanks for being part of learn to Quant I am the chief strategy officer at World Quant in my role I help to Define our firm strategy and drive several cross functional business initiatives including new avenues for growth and innovation in this final video we will discuss some Advanced research ideas that you may enjoy exploring on brain now that you have covered the basics there with our prior Alpha ideas as a reminder World Quant defines an alpha as a mathematical model that seeks to predict the future price movement of various financial instruments
advancements in technology coupled with an increase in the number of stocks the market cap of global equities trade in volumes and the speed of information absorption could position Quant researchers to benefit from these Trends and practice testing out ideas on brain further programs like Alpha go and Alpha zero made history when they defeated Grand Masters in their respective games of go and chess this victory over the world's top players which many thought would take decades to achieve underlines the potential of machines to surpass humans in complex tasks if we compare humans and machines across various
tasks like speech image or handwriting recognition with the use of increasing data computational power and advanced deep learning algorithms we see just how fast machines are able to carry out human performed tasks let's look at some Advanced areas that quants can explore on brain by cap capitalizing on these Trends around data and advanced deep learning Frameworks with the search of available data in recent decades brain tries to provide you with many different types of data in fact brain boasts a library of approximately 120,000 data fields and growing probably making it one of the largest freely
available Quant data libraries on the internet and with the Advent of techniques like deep learning Quant researchers could be poised to handle these large data sets with their Frameworks and also predict future data further expanding the data pool to form new [Music] ideas now let's see how quants can partner with Advanced statistical models machine learning and deep learning models to help enhance data on brain the models can predict missing historical data enhancing the original data coverage this boosts Alpha capacity and performance for example enabling Quant to use data from small universes like the top 1,000
liquid stocks on brain to trade across larger universes like the top 3,000 liquid stocks the models can help make intermediate predictions on low frequency data sets such as enhancing quarterly sales metrics in brain's fundamental data set to weekly or daily frequency this can boost Alpha turnover and performance quants can build new Alphas by predicting returns one or 5 days ahead or improve Alphas that use past information for example this could involve using brain statistical tools to predict earnings ahead of their announcement to capitalize on unexpected results we can combine multip data fields using Advanced models
into fewer predictive features that contain the essence of all the relevant data this approach can help harness the massive data growth we have seen it also addresses the high dimensionality problem of many data sets where data fields outnumber the observations a situation that can result in overfitting quants can partner with machines and really expand the kind of ideas they explore in quantitative Finance some of the noteworthy models that quants have used to boost their research on brain include deep learning models like recurrent neural networks and lstms natural language processing to optimize the search for data
fields machine learning models like the gradient boosted regression and elastic net regressions it is also possible to use large language models like GPT 4 for text analysis with the continuous advancements in GPU Computing server capabilities and cloud-based platforms like World Quant brain quants have more ability and more power than ever before to run extensive simulations and pack [Music] tests as we harness these powerful tools platforms like brain can become your opportunity to bring your an analytical and creative skills together but what makes brain truly novel and a powerful place to learn is more than data
and tools it's the global community of collaboration where ideas compete so quants can always be improving and sharpening their ideas in brain you will get realtime feedback from sophisticated simulation tools and from experts and peers that's why we built brain why we are constantly evolving olving the platform providing new features new tools new data to inspire our researchers and give them the power to inspire each other one idea one model one alpha at a time keep experimenting and we will see you there in brain [Music]
