Financial markets seem to be governed by a random and chaotic system. In reality, there are certain patterns that, although complex to identify, can guide one towards order even in the constant noise of billions of transactions. As in all sciences, it is possible to use a scientific method to understand the operating mechanisms behind the movements of financial markets.

The scientific method starts with the collection of a large amount of data such as prices and transaction volumes, which can be used to predict the future movements of a specific asset, the factors that influence them, and thus the potential risks. Hypotheses of how the system works are formulated and data are used to validate them. This method is based on the construction of statistical and mathematical models, which are able to constantly learn and improve without the influence of human emotions.

The Fintech group participates in the process of creating objective, reliable, verifiable, and shareable knowledge of the mechanisms that govern financial markets.


See more at Quantum & AI Lab