By Ernest Chan, Ph.D., Haoyu Fan, Ph.D., Sudarshan Sawal, and Quentin Viville, Ph.D. Previously on this blog, we wrote about a machine-learning-based parameter optimization technique we invented, called Conditional Parameter Optimization (CPO). It appeared to work well on optimizing the operating parameters of trading strategies, but increasingly, we found that its greatest power lies in its potential to optimize portfolio allocations. …

By Ernest Chan, founder, PredictNow.ai Inc. — The story is now familiar: Zillow Group built a home price prediction system based on AI in order to become a market-maker in the housing industry. As a market maker, the goal is simply to buy low and sell high, quickly, and with minimal transaction cost. Backtests showed that its…

Ernest Chan, founder, PredictNow.ai Inc. — When it comes to machine learning, the holy grail is Artificial General Intelligence; essentially cloning a silicon replica of a human being capable of making autonomous decisions. Unfortunately, (or fortunately depending on your point of view), this technology is still far off. For instance, despite the billions of R&D dollars…

By Quentin Viville, Sudarshan Sawal, and Ernest Chan PredictNow.ai is excited to announce that we’re expanding our feature zoo to cover crypto features! This follows our work on US stock features, and features based on options activities, ETFs, futures, and macroeconomic indicators. These new crypto features can be used as…

By Ernest Chan and Akshay Nautiyal Features are inputs to supervised machine learning (ML) models. In traditional finance, they are typically called “factors”, and they are used in linear regression models to either explain or predict returns. …

By Ernest Chan Predictnow.ai is pleased to announce the launch of our new pre-engineered stock fundamental features. These features are ratios and indicators that have been constructed from the quarterly and annual financial statements of public companies. In the US, these are the 10-Q and 10-K filings to the SEC…

By Ernest Chan What is PredictNow.Ai? PredictNow.ai is a no-code machine learning SaaS-based in Toronto, Canada that is primarily focused on helping traders apply machine learning to their investment strategies in order to predict the profitability of their next trade. PredictNow.ai …

By Ernest Chan Every trader knows that there are market regimes that are favorable to their strategies, and other regimes that are not. Some regimes are obvious, like bull vs bear markets, calm vs choppy markets, etc. These regimes affect many strategies and portfolios (unless they are market-neutral or volatility-neutral…

By Ernest Chan One major impediment to widespread adoption of machine learning (ML) in investment management is their black-box nature: how would you explain to an investor why the machine makes a certain prediction? What’s the intuition behind a certain ML trading strategy? How would you explain a major drawdown…