DailyDirt: Making Money The Old-Fashioned Way... By Algorithms
from the urls-we-dig-up dept
People are changing the way they make decisions now that technology can help them crunch more numbers than ever before. Instead of just going with a gut instinct, decisions can be based on all kinds of random data analysis (for better or worse). Big data is a popular trend, and more and more successful examples of data mining for profit seem to get publicized every day. But are we only looking at the winning combinations and ignoring the losers? Here are just a few examples of algorithms that might be making some money.
- If you don't think your cellphone metadata matters to anyone, venture capitalists might not want to fund your new venture. Apparently, some VCs fund entrepreneurs based partially on an unconventional algorithm that includes things such as the age of the founder's cellphone number and the average time of his/her first call in the morning. [url]
- Can an algorithm pick stocks better than human financial analysts? Sure, but a monkey throwing darts can, too, sometimes. The wisdom of a crowd of analysts might not be a bad algorithm to use, but it still relies on a crowd of humans. [url]
- Poker players can bluff to win, but now that more players are practicing against algorithms and using simulations -- it might be harder for those bluffs to work. It's not so reliable to try to guess when a player is bluffing, but a simulation of thousands of poker hands can give you some statistical confidence.... [url]