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"I trained rats to trade -- and win -- on Wall Street"

A cautionary tale about the dangers of facile backtesting... I think.

http://www.vice.com/read/rattraders-0000519-v21n12

Rattraders is an experiment in which I trained lab rats to trade in the foreign-exchange and commodity-futures markets. With the help of these rodents, I managed to outperform some of the world's leading human fund managers. My motivation was to find out what kind of highly paid jobs will eventually be replaced by machines—or, as was the case here, by rats. Like the work of many in this field, my research indicates that all jobs that do not require human-to-human interaction may be replaceable. I focused on brokers because of their high earnings, but the job itself seems to be based on pattern-recognition capabilities and the ability to avoid distractions. I figured that rats might be up to the task.

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"The results were astounding: The second generation of top traders had a much better performance than their parents, but further research will be necessary to confirm this finding of ours. I am now working on software that generates real-time ticker tracks so I can put the system to the ultimate test (market conditions in the real world). If the performance is good, I will keep the experiment going and either set up my own hedge fund managed by my rats or train them to work for banks."

Of course the second generation of rats would be better, else you would not be able to start the rat hedge fund. And, the more you inbreed them, the closer you will get to achieving a Master of the Universe Owner of Everything Which Exists Everywhere...It is utterly unbelieveable how greedy and blinded people become when faced with the prospect of taking risks with a ton of other peoples' money, i.e. the prospect of becoming a hedgie.