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Customer Spotlight: Cypress Point Technologies

Posted by Jess Lin

12.11.2013 10:00 AM

We have amazing customers doing even more amazing things with their data. As we hear from our customers with their stories, we will be sharing them with you here on our blog. Hopefully they will help inspire you to think about what more you could be doing with your own data! Contact us if you have a case study using Eureqa you would like to share as well.

Trin iconCypress Point Technologies creates tools that allow hedge fund managers to analyze the New York and NASDAQ stock exchanges. Charles Brauer founded Cypress Point Technologies in 2009 after seeing success with his side project, HedgeTools. Two years later, Brauer and his team began to work on expanding HedgeTool’s capabilities with custom models that use early-morning stock data to predict stock price trajectories through the rest of the day. Given the complexity of the task and the number of trends that could turn out to be false positives, it was crucial for the team to develop a sophisticated yet lightning-fast algorithm that was capable of producing accurate predictions.

After seeing a story in Wired Magazine about Eureqa, Brauer decided to download the software and get in contact with Nutonian founder and CEO Michael Schmidt. In his first few trial runs with Eureqa, Brauer took historical, minute-by-minute price data for a batch of stocks, pre-categorize them as “good” or “bad”, and let Eureqa come up with an algorithm that could predict trajectories based on the first 30 minutes of market activity. The results were impressive enough on the initial, minimal dataset, but after adding in additional parameters and refinements, the resulting models have been making increasingly accurate predictions. Most importantly for Brauer, the speed and accuracy of generating and applying models makes them easy to deploy within HedgeTools. “I have a test portfolio that’s managed based on recommendations from HedgeTools,” says Brauer, “and it beats the performance of the S&P 500 by a wide margin.”

For more details, read the full case study here!

Topics: Case study, Cypress Point, Eureqa, Making predictions

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