Have you ever thought about AI to predict the market outcome??🤔
Yes, that's what every traders thinking when they hear about AI. 😁
Have you ever considered holding algorithms competition, and filtered out the best AI to work for you?🤔
Find the best AI and use the power of AI to grow your funds. 👍 ?
Instead of your funds, it is a "Hedge Fund" . And instead of using in-house analysts and data scientists to develop , use Cryptocurrency and Tournament to find the best AI.
Basically, this is what San Francisco based hedge fund, Numerai doing , and it uses Numeraire $NMR as crypto tokens.
Numerai platform holds weekly data science tournaments. It provides a large dataset of financial dataset to the community of data scientists. The data is encrypted and scrambled so it is impossible to identify the specific stock or financial instrument. This ensures the competition is based on the scientists abilities to find hidden patterns.
Data Scientists use this data to build machine learning models that predict stock market movements. They then submit their predictions to the Numerai Platform .
To participate in the tournament , data scientists must stake a certain amount of $NMR tokens on their predictions . If a model's prediction is correct and contribute the hedge fund's performance positively
, the data scientist earns more NMR tokens
If a model's predictions are incorrect and perform poorly, staked NMR tokens are burned. This provides a strong incentive for participants to submit only their high-quality work.
Numerai takes all the submitted Predictions and combines them into a single "meta model" . Based on collective intelligence of thosands of data scientists, they formed the aggregate model that the hedge fund uses to make its real-world trades in major stock markets.
Numeraire $NMR not only use for staking, but also used to reward successful participants . More recently, NMR holders can influence how the meta model is built and align the incentive of the community with the funds performance .
