Numerai manages an institutional grade long/short global equity strategy for the investors in our hedge fund. They transform and regularize financial data into machine learning problems for their global network of data scientists.
Their data scientists don't need capital, data or finance domain knowledge to compete on Numerai. Numerai investors provide the capital, and Numerai embeds their finance domain knowledge into the design of their datasets.
Numerai proposes Numeraire, a new cryptographic token that can be used in a novel auction mechanism to make overfitting economically irrational. The auction mechanism leads to equilibrium bidding behavior that reveals rational data scientists’ confi-
dence in their models’ ability to perform well on new data. The auction mechanism also yields natural arguments for the economic value of a Numeraire token.