The “algorithm” word is commonly used these days, however for most the meaning and exact definition is a mystery.
Algorithms have a long history. The word can be traced back to the name of a 9th century Persian scientist, astronomer and mathematician. In a 12th century translation of one of his books, his name Abdullah Muhammad bin Musa al-Khwarizmi was rendered in Latin as Algorithmi.
For more than 12 centuries algorithms have played a role in making peoples’ lives easier. The one common denominator throughout the ages – human intelligence.
What is an algorithm? Nothing but a clearly defined step by step thinking approach to solving complex problems. Every single algorithm ever made can be reduced to a simple series of steps. The advent of the computer, in 1946, added boundless power to the algorithm.
Computational finance as a discipline surfaced in the early 1950s with Harry Markowitz solving portfolio selection problems using mathematical framework optimization. Due to lack of computer power he took to developing algorithms for approximate solutions.
With 12 centuries’ proof of the power of the algorithm and computers and programs relying on sequenced step by step instructions, the future’s future is in good minds.
The algorithm in its simplest form.
Were it not for the algorithm the world wouldn’t be the place it is today. The software and hardware that are part of our everyday business lives all successfully thrive on algorithms.
Algorithms aren’t uninvited magical ‘things’ that live in peoples’ computers to randomly dictate their digital lives. Created by real people – strategically written, objective driven sets of rules, for machines to follow, to invisibly execute specific tasks – in seek of specific outcomes.
That’s how we do it at Empiric Capital. We engineer well defined algorithms with the view to test new theories, discover new realities, unearth patterns, signals, noises and events otherwise invisible in conventional investment practice.
Our engineers, scientists and technologists’ talents and beliefs are vested in the power of the algorithm. In reality: our people are the Empiric Capital algorithm.
What is it that drives our people?
To consistently deliver on our customer promise which is founded in The Believability Rule.