Investment rats | The Enlightened Economist

Quoting 

One project is Michael Marcovici’s Rat Trader. The book describes the training of laboratory rats to trade in foreign exchange and commodity futures markets. Marcovici says the rats “outperformed some of the world’s leading human fund managers.” The rats were trained to press a red or green button to give buy or sell signals, after listening to ticker tape movements represented as sounds. If they called the market right they were fed, if they called it wrong they got a small electric shock. Male and female rats performed equally well. The second generation of rattraders, cross-bred from the best performers in the first generation, appeared to have even better performance, although this is a preliminary result, according to the text. Marcovici’s plan, he writes, is to breed enough of them to set up a hedge fund.

wow

Similar motivation (feeding/electric shock) would likely work equally as well on humans, lol.

Mike

When I saw the title of this thread I was expecting something regarding The rumpled one{TRO}....

Here's a follow-up article

The Artist Who Trained Rats to Trade in Foreign-Exchange Markets - The Atlantic

Next flash crash I am going to wonder if somehow a rat was involved......or when I am relaxing at the beach next summer and a big fat rat is drinking a Pina Coloda next to me while reclining on a chise lounge while reading the wall street Journal will I be curious and ask him what he does for a living.


Quantismo....

Big Mike 

Similar motivation (feeding/electric shock) would likely work equally as well on humans, lol. Mike

Anyone have a source for an interface that will shock me when I make a bad trade?

I bet this would work better than 90% of the strategies most traders are running now.

Of course the rat has an advantage. He does not know what the market is. All he knows is that when he hears price go up he should buy, and when he hears the price drop he should sell. He has no bias as to what he thinks the market should do.

It wouldn’t be much different than hiring someone who knew nothing about the market to trade your system. You show him the plan and pay him by the hour to enter and exit trades based on the plan. The outcome of the trade makes no difference to the amount of money he earns. If he doesn’t follow the plan to the letter then he gets fired.

I'd be willing to bet that the majority of traders who come up short of their aspirations do so because they don’t have a plan or they don’t have the discipline to follow their plan.

I always find argument such as "outperform[s] some of the world’s leading human fund managers” very disingenuous. People invest in funds to massively reduce their risk of catastrophic loss. It's not difficult to outperform funds in the short run, especially in a strong bull market.

Hello shodson,

Thank you very much for your follow up. It`s really helpful for me. I really appreciate you