In the second part of an interview with the founders of machine learning company 3AI, Jacob Ayres-Thomson and Hassan Salamony (pictured) discuss how moving beyond academic research and leveraging the team’s hedge fund and proprietary trading backgrounds help the firm develop new index strategies with a different approach.

A key part of what 3AI does on the index side is to remove the fallacies of back testing in conventional strategies which focus on overfitting the observed past performance on the small subset of stocks that make it into the strategies past. We are happy to be what we call a fast follow rather than first into market - Jacob Ayres-Thomson “The very act of looking at different strategies reduces the probability that the one chosen is real and not by chance,” says Ayers Thomson. &ld

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