kaal:claim:3409548-010

Requiring data scientists to stake a cryptocurrency on their own predictions is a workable remedy for overfitting, because the stake expresses confidence in live performance and lets the fund select the optimal model.

Source quote, verbatim

The staking process, in turn, enables Numerai to choose the optimal model and in the process improve the performance of its hedge fund.

From

Kaal, Financial Technology and Hedge Funds (2019), II.2 Artificial Intelligence and Big Data, p. 12
https://ssrn.com/abstract=3409548 · source PDF

Cite as

Kaal, Financial Technology and Hedge Funds (2019). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409548

Holds when

crowdsourced modeling competition with a stakeable token

Classification

designsupport: arguedrisk-and-incentives

Related claims

extends kaal:claim:2998033-022 Requiring data scientists to stake a cryptocurrency on their own predictions converts private confidence into ...

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