Objective
Create an economically self-sustaining (learning) system.
Solutions
API
Raw
- generate a new bank account
- set up a cloud service with this bank account
- select a statistical analysis framework
- install it on the cloud service
- start the framework to issue and log decisions
- set up a finance API with this bank account
- issue trades resulting from generated decisions*
Single simulation refinement
- set up the raw version
- replace the finance API by a virtual portfolio APIpt
Multi simulations refinement
- set up a single simulation version
- duplicate it changing the model used
- order the resulting models based α
- overall performance
- minimum risks
Mult-agent refinement
- run the raw version
- add external information APIs
- order by return on investment
- re-allocate resources accordingly K
All those, especially the Multi simulations refinement, can benefit from the FOSS community model and, for example, exchange simulations results (or even trade them but this, not gaining from others simulations).
"Finance or real"
Note that this last step is precisely what differentiate a "classical business" that does produce physical good or services by producing a margin. In this situation the core competency is strictly financial instead of being secondly financial (managing the margins).
Consequently the same overall system could be used to other businesses by changing this final step to the core competency of the corporation.
Warning
- The Fourth Quadrant: a map of the limits of statistics by Nassim Nicholas Taleb for Edge, 2008
- David Cameron in Conversation with Nassim Taleb, Royal Society for the encouragement of Arts, August 2009
References
- Quantitative Trading: How to Build Your Own Algorithmic Trading Business by Ernest Chan, Wiley 2008
- see also my reading notes QuantitativeTrading
- and the resulting FinancialTools.QuantitativeTradingBookAnswers
- see also my reading notes QuantitativeTrading
- Automated Trading and Cloud Computing, The Online Investing AI Blog April 2009
- R/Finance 2009: Applied Finance with R first annual R/Finance conference for applied finance using R
- MLOSS.org Machine Learning Open Source Software
- Finance group, Ecole Polytechnique, Paris
- Homepage of Nicole EL KAROUI, Professor of Applied Mathematics, Ecole Polytechnique, Paris
- Using Genetic and Evolutionary Algorithms to Build a Trading Model from Neural Market Trends
- TheTechnicalTrader.net : Live Technical Analysis
- Cybernetic Trading Strategies - Developing a Profitable Trading System with State-of-the-art Technologies by Murray Ruggiero Jnr, Wiley 1997
Note that funding solutions should be ordered by size of capital and type (equity, loan, etc) or even source (LP, banks, crowd, etc). Eventually a dedicated page should be created.
Seed funding / Business angels
- Y Combinator funding early stage startups
- TechStars Seed capital and mentorship for startups
- i/o ventures
- Guide to Seed Fund Incubators (Y Combinator Clones) by Josh Catone, RWW 2008
- Seed Incubator Panel: YCombinator, VentureHacks, Capital Factory, TechStars - ReadWriteStart at SXSW by Dana Oshiro, RWW March 2010
- Open Angel Forum providing entrepreneurs with free and open access to the angel investors that they need.
- Presumed Abundance
- in France
- XMP Business Angels
- Les liens utiles de Réseau Entreprendre Paris with business angels and incubators in Paris and its region
Venture capital
See also my notes VentureCapitalAndTheFinanceOfInnovation.
- Videolectures category: Venture Capital
- Early-stage venture capital investing; shaping successful high tech startup companies towards accelerated exits by Yoav Andrew Leitersdorf from YL Ventures, WebStart 2008
- Stanford
- Sequoia Capital Venture Capital Funding - Venture Capitalists
- BBC Dragons' Den Entrepreneurs pitch for investment from some of Britain's top business brains
- AngelList, Venture Hacks November 2009
- Websites tagged with vc (venturecapital) by SitesLike
- Capital Factory seed stage mentoring program for startups that provides a small amount of seed capital and weekly mentoring sessions by entrepreneurs who have founded successful companies.
Crowdfunding / P2P Finance / Virtual currency
- open money enables your community to create new types of money and use them to cultivate the kinds of wealth that really matter.
- crowdfunding.fr blog by Malik Goulamhoussen
- example of specialized P2P investment : My Major Compagny
- WeBank.org.uk
- While in the past web-enabled innovation in the sector meant online banking and web-access to front-end customer services, there is today a growing set of organisations which remove banks and other institutions as intermediaries altogether.
- Kickstarter funding platform for artists, designers, filmmakers, musicians, journalists, inventors, explorers...
- rediscovered with The Board Of Innovation - Business and revenue model innovation dedicated article
- Bitcoin P2P Cryptocurrency peer-to-peer network based anonymous digital currency. (#bitcoin-dev on freenode)
- the Bitcoin Faucet offering "Free Bitcoins"
- Ripple open decentralized payment network
- Super Rewards virtual currency monetization platform for social publishers and online communities.
Community funding for open projects
- OpenScienceFund.org by jacob from diybio Houston
- will most likely focus on biotech
- Open Source Hardware Bank
- focusing on open source electronics
- Fund Science
- Cofundos.org community innovation and funding
- focusing on open-source software
Social Lending and microfinance
- Dr. Yunus and micro-credit received the nobel prize for peace in 2006 with P2P/Citizen Initiative growing on the web and p2pfoundation.net offering a rich starting point
- PRETp2p - prêts de particulier à particulier / kiva.org / babyloan.fr (from iTele evening edition of the 14th of November)
- as a solution to Money As Debt directed by Paul Grignon quoting at 32:05 :
- "If some people within this money supply begin systematically lending money at interest, their share of the money supply will grow. If they continually re loan at interests all the money that gets paid back, what's the inevitable result? Weather its gold, theater, dept money, doesn't matter, the money lenders will end up with all the money. And after the foreclosures and bankruptcies are all filled, they will get the real property too. '''Only if the processes of lending money at interests were evenly distributed amongst the population would the central problem be solved.'"
- Kiva Loans that change lives U.S. 501(c)3 non-profit organization.
See also
- Seedea:Seedea/PaymentSystems
- Quant model + R language (tutorial, Decision Science News' R video tutorial 1, 2) + R libs + thinkorswim's API + own object bridge
- WikiR Structure : Integrate R language into MediaWiki
- Review of Mint On-line Personal Finance Tool : The Vault is About Half Full for Armchair Fiduciary
- online FOSS/SaaS based on RADIUS, TACACS and Diameter (cf Accounting (IT) management on wikipedia)
- Black–Scholes mathematical model of the market for an equity, in which the equity's price is a stochastic process.
- If You Are So Smart, Why Aren't You Rich? The Effects of Education, Financial Literacy and Cognitive Ability on Financial Market Participation by Shawn A. Cole and Gauri Kartini Shastry for HBS Working Knowledge, 2009
- Artificial Intelligence matrix from Seedea
- Wesabe : "a community of real people dealing with real money issues."
- discussed with Sylvain
- http://en.wikipedia.org/wiki/Mean_reversion_%28finance%29
- http://en.wikipedia.org/wiki/Model_risk (for the notion of back-testing)
- Money as Debt II Promises Unleashed from MoneyAsDebt.net
- kaChing find and follow top investing talent.
- kaChing API
- "access your portfolio, watchlist, performance history, trade history, research posts"
- issuing trades on 10-Minute Introduction to KaChing's REST API
- kaChing API
- GnuCash personal and small-business financial-accounting software
- Category: Business » Stock Exchange at Abbreviations.com
- Advances in Machine Learning for Computational Finance (AMLCF '09), at University College London
- XBRL (eXtensible Business Reporting Language) open data standard for financial reporting.
- Open Economics provides open content, data and code related to Economics.
- The Industrial Organization of Banking by David Van Hoose, Springer 2010
- Le virus B crise financière et mathématiques by Christian Walter and Michel de Pracontal, Canal Academie January 2010
- SITMO Quant Equation Archive community project to share and organize quantitative financial equations.
- Trading Agent Competition Competitive Benchmarking for The Trading Agent Community
- CrunchBase free database of technology companies, people, and investors that anyone can edit.
- could be used to monitor emerging companies thanks to an RSS flux listing funded projects by name, location and money invested (and ideally other options to filter on)
- Fundspire Clear, easy-to-understand hedge fund research platform
- Move Your Money
- Bay Area Trading Systems Interest Group explore and discuss Trading Systems, Meetup.com
- ibpy implements functionality that the Python programmer can use to connect to IB, request stock ticker data, submit orders for stocks and futures, and more.
- SeriesSeed.com standardized set of documents that can be quickly and easily deployed for a seed investment: to help get a company financed properly, legally quickly and intelligently.
- CAP-idea deploy capital in the form of "Growth Debt"
- http://finviz.com
- GPUs in Finance A Thalesian weblog: the power of GPUs


