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.

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380387)

Risk Disclosure

The trading system is dependent on rodents and their ability to hear and react to ticks. It is possible that a rodent may misinterprete the tick. There is also a possibility that the rodents will eat each other as a result of continously guessing wrong. Further, there is a risk that PETA will try to rescue the rodents or unionize them. This may result in substantial loss of profit s or actual loss to the fund.

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380432)

i dont even know if this is fucklaw or fucklaw parody

amazing either way

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380442)

there is a large literature about various neural network architectures being used for market prediction on price data. what is so surprising about a biological version being used for the same purpose?

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380447)

do you think these wily hedge funds could be hiding earnings to lower taxes?

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380474)

it can't be that obvious, right?

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380479)

180 site

"We are continuously crossing the best trading rats with each other in order to breed specialists in various markets for our clients. The second generation of top traders ususally shows a much better performance compared to their parents."

"The decision was correct, Lehman gets a bonus after shorting the USD."

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380485)

There's also a self-reinforcing effect to stock pickers -- the fact that so many people are analyzing and picking stocks makes it hard to outperform the market precisely because the effect of all those pickers is efficiency. If you had a market without much analysis/stock-picking, skilled stock pickers would be more effective.

Hedge Funds are largely flame, but that's as much because of their fee structure as their skill, i.e. any alpha they have is going to be cancelled out or more by their expense.

One other point -- this just says "human fund managers" -- that could also be mutual funds.

(http://www.autoadmit.com/thread.php?thread_id=2681998&forum_id=2#26380872)