Alpha Hunter: The DNA of Financial Markets

Aug 4th, 2011 | Filed under: Alpha Hunters, Hedge Fund Industry Trends, Hedge Fund Operations and Risk Management, Performance, Analytics & Metrics, Today's Post | By:
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The discovery of DNA’s structure revolutionized our understanding of how the human body works, revealing the source of our biological successes alongside the true sources of previously ‘unpredictable’ diseases.  Our current ‘mainstream’ understanding of financial markets is rooted in thinking akin to pre-genetic biology- and many researchers around the world are now putting together theories and models to show the true structure of ‘how’ financial markets really work.

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Author Bio:
Vikas Shah is Founder of the consultancy Thought Strategy and CEO of Swiscot Group (a diversified trading firm). Vikas writes and publishes Thought Economics, a leading journal where he interviews some of the most influential individuals in the world. He is a respected commentator and analyst on global issues, finance and economics and a non-executive to a number of philanthropic organisations worldwide. You can follow him on twitter @MrVikas.

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  1. […] – The DNA of financial markets. […]

  2. This reminds me of the work of the late Benoit Mandelbrot, who died last year, in terms of his work on fractal geometry and modelling financial markets using natural events like storms. Is there in fact any parrallel ?

  3. So How can i uses this in reality? What would a model like this look like?

  4. Dear Prof. Dr. Neil Johnson,
    I have read your interview with interest
    as I was trained as a physicists and then came to risk management.
    Especially interesting I have found that apparently your published answers contradict both:
    Mandelbrot`s fractal “(Mis)behaviour of Markets” and Soros´ reflexivity “Alchemy of Finance”.
    Did I get a correct interpretation of your interpretation.
    Cold you e-mail me preprints of your research.
    Kind regards
    Dmitri Beliaev, Ph.D.

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