{"id":11696,"date":"2014-11-12T09:00:57","date_gmt":"2014-11-12T14:00:57","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=11696"},"modified":"2014-11-11T21:37:47","modified_gmt":"2014-11-12T02:37:47","slug":"can-rats-predict-foreign-exchange-markets","status":"publish","type":"post","link":"http:\/\/www.Centives.net\/S\/2014\/can-rats-predict-foreign-exchange-markets\/","title":{"rendered":"Can Rats Predict Foreign Exchange Markets?"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2014\/11\/111214_0234_CanRatsPred1.jpg\" alt=\"\" width=\"638\" height=\"425\" \/><\/p>\n<p>Joe Pinsker wrote about a piece of financial art:<\/p>\n<ul>\n<li>An artist started a project where he trained rats to make predictions about the foreign exchange markets.<\/li>\n<li>Movements in the value of foreign currencies were translated into musical notes. Rats were then trained to predict the next musical note. If they got it correct they got a treat, if they got it wrong they got a minor shock.<\/li>\n<li>After a few months rats with low rates of accuracy were removed. The good predictors were then cross-bred to create offspring that turned out to be even better at making predictions.<\/li>\n<li>One second generation rodent trader had an accuracy rate of 57% &#8211; better than many of the world&#8217;s leading fund managers.<\/li>\n<li>The rats have their own (mock) corporate website and claim to be headquartered in the Cayman Islands.<\/li>\n<li>Those looking to find the nearest rat for instant riches should note that the rodents get tired after about 20 trades, severely limiting their use.<\/li>\n<li>Moreover this was an art, not a science project. It did not go through tests for statistical significance, or have its method scrutinized. The correlation is likely a coincidence.<\/li>\n<\/ul>\n<p>Read more about why the rats may outperform humans, why this should be treated as satire, and what the artist thinks about it all over <a href=\"http:\/\/www.theatlantic.com\/business\/archive\/2014\/10\/the-artist-who-trained-rats-to-trade-in-foreign-exchange-markets\/381456\/\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/www.theatlantic.com\/business\/archive\/2014\/10\/the-artist-who-trained-rats-to-trade-in-foreign-exchange-markets\/381456\/\">The Atlantic<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Joe Pinsker wrote about a piece of financial art: An artist started a project where he trained rats to make predictions about the foreign exchange markets. Movements in the value of foreign currencies were translated into musical notes. Rats were then trained to predict the next musical note. If they got it correct they got [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11695,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11696","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2014\/11\/111214_0234_CanRatsPred1.jpg","_links":{"self":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/11696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=11696"}],"version-history":[{"count":3,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/11696\/revisions"}],"predecessor-version":[{"id":11699,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/11696\/revisions\/11699"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/11695"}],"wp:attachment":[{"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=11696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=11696"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=11696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}