David Wright
American baseball player
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May 10, 2026
Why Generative AI Still Can’t Trade | David Wright on How Quant Alpha Actually Is Done With Machine Learning, Decision Trees, and Gradient Boosting
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16:44Jack FarleyHOST
Can you break down those four different pieces of data and, and why did you do that, that breakdown? What sorts of information are the signals?
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16:54David WrightGUEST
If we dig down a level from, from what you described, so we, when we think about prices, we're, we're focused on, we're focused on, on trends over, over different types of horizons.
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17:06David WrightGUEST
Those could be trends in the cross section, so comparing stocks to performance of other stocks in the universe over different horizons.
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17:14David WrightGUEST
It could be trends in the short term, the medium term, and the long term at the individual stock level.
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17:20David WrightGUEST
It could be some technical measures in, in how much, uh, maybe a stock's price is oscillating around a, a, a certain, uh, level.
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17:29David WrightGUEST
When we move into the, uh, when we move into the, the fundamental world, we are still thinking about a lot of the same, uh, accounting metrics that you would see in a traditional approach, but rather than thinking about them what is their level at the moment, we're more focused on how they might be changing.
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17:46David WrightGUEST
So what is the, what is the volatility in the, in the dividend yield over the last six months? What is the volatility in the return on assets over the last 12 months? So we're very much focused on the changes, uh, to fundamentals.
6 MINS LATER
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24:03Jack FarleyHOST
What's an example of something that you can understand by a human, people will be listening and say, "Oh, that makes sense," and you're using the quantitative technique to capture that? W- And what is an example of the 85% of this works, the data tells us this works, but we have no idea why?