Source: https://www.linkedin.com/feed/update/urn%3Ali%3AugcPost%3A6843041902212784128
BRINT.com: Princeton University: #New #Compounding Beyond #ZIRP #NIRP: #Compounding Worked per ‘legacy’ #Deterministic #Models since recent years when #Theory, #Academia, and #Textbooks had to grapple with the reality of Zero and Negative Compounding with the coming of #Zero #InterestRates and #Negative #Interest #Rates… Key #RiskManagement Challenge is Now to Not Only Mitigate #Diminishing #Returns But #Negative #Shocks of #ExtremeEvents & #BlackSwans…
Beyond #Model #Risk #Management to #ModelRisk #Arbitrage for #FinTech Era: How to #Navigate ‘ #Uncertainty ’…When ‘ #Models ’ Are ‘Wrong’…And Knowledge’…‘Imperfect’! Knight Reconsidered Again: #Risk, #Uncertainty, & #Profit Beyond #ZIRP & #NIRP
Research Presentation at: #Princeton #Quant #Trading #Conference, Princeton University: https://lnkd.in/dJ-Gnxx:
The latest #Princeton presentation proposes two new #financial #innovations: #ModelRiskArbitrage for #OpenSystemsFinance. It develops the new #framework of #Model #Risk #Arbitrage for #profit-#maximization in the emerging #global #financial #markets characterized by unprecedented #uncertainty, #complexity, and, rapid discontinuous #changes.
Aligning with #GeorgeSoros’ #ReflexivityTheory and associated #Hegelian #Dialectic, it characterizes ‘ #reflexivity ’ as the missing link in #Finance #theory, #research, and, #practice that can help understand the effect of #feedback and #feedforward #loops across #Time and #Space in information-based non-deterministic ‘open systems’ Finance. Consistently, it is based on the Hegelian Dialectic characterizing #profit-maximizing #BlackHat approach as compared with #risk-optimizing #WhiteHat approach. The #BlackHat approach #exploits all #vulnerabilities at all levels of all #systems to maximize advantage over the White Hat approach. Similarly, #ModelRiskArbitrage #exploits all #model #risks at all levels of all systems to maximize advantage over #ModelRiskManagement.
The current presentation advances upon last two decades of our applied and industrial practices on post-WWW era #modeling #frameworks of #uncertainty and #riskmanagement and designing #selfadaptive #complex #systems for #high #velocity hyper-turbulent environments characterized by #high #uncertainty. The latest invited presentation is the sequel to the prior #Princeton #QuantTrading #Conference presentation which advanced #FrankKnight’s (1921) original treatise developing the foundation of #Risk, #Uncertainty, and #Profit for the #Cyber Era which laid the foundation for modeling of ‘ #true #uncertainty ’ which is distinct from [theoretical] #risk and “which forms the basis of a valid theory of #profit and accounts for the divergence between #actual and #theoretical #competition” (Knight 1921).
Princeton University Presentations: ModelRiskArbitrage.com:
R&D Impact Among #NobelLaureates Such as #BlakScholes:
We Create the Digital Future™: https://lnkd.in/esk8PEp::
‘ABC’ of #FutureOfFinance:
AIMLExchange.com: BRINT.com: C4I-Cyber.com.
