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#159 – Richard Craib: WallStreetBets, Numerai, and the Future of Stock Trading

Feb 7, 2021

Guest

Richard Craib

Richard Craib, founder of Numerai, a pioneering crowdsourced AI hedge fund, shares his insights into the WallStreetBets phenomenon and the GameStop saga. He discusses the ethical dilemmas of short selling, contrasting 'evil shorting' with 'chill shorting.' Craib explores innovative investment strategies, the importance of community-driven data in finance, and the future of stock trading through AI. He also reflects on the evolving significance of wealth in cryptocurrency and the personal journeys that shape entrepreneurial ambition.

01:55:40

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ADVICE

Numerai's Approach

Numerai, a crowdsourced hedge fund, gives away its obfuscated data for anyone to model.
This allows talented individuals to use machine learning to find patterns without revealing the data's meaning.

insights

INSIGHT

Tree Models and Feature Exposure

Tree models like XGBoost perform well on Numerai’s data but require a counterintuitive approach.
Reducing exposure to seemingly important features is crucial for managing risk and volatility.

volunteer_activism

ADVICE

Getting Started with Numerai

To participate in Numerai, download the data, experiment with the provided example script, and modify the algorithm.
Set up a compute server on a platform like AWS to automate prediction submissions.

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Sponsorship Highlights: Audiobooks and AI Solutions

02:27 • 2min

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Advancements in AI for Business Optimization and Vision Tracking

04:47 • 3min

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The WallStreetBets Phenomenon

07:48 • 15min

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Shorting Unveiled: The Good, the Bad, and the Hedge Funds

22:26 • 8min

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Navigating Leadership Dynamics

30:04 • 7min

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Revolutionizing Hedge Funds: The Power of Open Data in Trading

36:58 • 2min

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Innovative Investment Strategies in Stock Trading

39:07 • 20min

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Trading Transformations: Numerai vs WallStreetBets

59:24 • 18min

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Redefining Wealth and Innovation

01:17:39 • 19min

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Navigating Finance and Innovation

01:36:36 • 14min

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Exploring the Meaning of Life Amidst Daily Distractions

01:50:29 • 2min

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Reflections on Mortality and Ambition Amidst Isolation

01:52:20 • 3min

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Richard Craib is the founder of Numerai, a crowd-sourced, AI-run stock trading system. Please support this podcast by checking out our sponsors:
– Audible: https://audible.com/lex to get $9.95 a month for 6 months
– Tryolabs: https://tryolabs.com/lex
– Blinkist: https://blinkist.com/lex and use code LEX to get 25% off premium
– Athletic Greens: https://athleticgreens.com/lex and use code LEX to get 1 month of fish oil

EPISODE LINKS:
Richard’s Twitter: https://twitter.com/richardcraib
Numerai’s Twitter: https://twitter.com/numerai
Numerai’s Website: https://numer.ai

PODCAST INFO:
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– Medium: https://medium.com/@lexfridman

OUTLINE:
Here’s the timestamps for the episode. On some podcast players you should be able to click the timestamp to jump to that time.
(00:00) – Introduction
(08:12) – WallStreetBets and GameStop saga
(22:25) – Evil shorting and chill shorting
(24:31) – Hedge funds
(30:04) – Vlad
(37:00) – Numerai
(1:04:16) – Futre of AI in stock trading
(1:09:55) – Numerai data
(1:13:37) – Is stock trading gambling or investing?
(1:17:32) – What is money?
(1:20:49) – Cryptocurrency
(1:24:06) – Dogecoin
(1:28:36) – Advice for startups
(1:44:27) – Book recommendations
(1:46:29) – Advice for young people
(1:50:30) – Meaning of life

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