From 01.08.2020: HEDGE21 MTISR sensors integrated with all HEDGE21 controllers

@NASA (hubblesite.org): Lagoon Nebula (left: denoised).

What about a national economy, such as the American or the British? The observation is worthwhile for treasurers because there is a correlation to  a nation's currency. A nation's economic development can be observed through proxies or data such as interest rate. The pricing of currencies from resource-rich countries is also driven by economic developments of their main trading partners, plus some leading indicators. Special activities also have an impact on currency rates, for example when a sovereign wealth fund purchases stocks.

 

Market activities and their effects do not always follow the textbooks of economists. As early as the eighties of the last century, physicists recognized that economies are complex, dynamic systems for which the following applies: One cannot predict their behavior. Many classic economic models are unable to depict complexity.

 

Deep learning cannot learn weird market effects for any other reason. The available market data is simply too thin for the multiple relationships which apply to activities of market participants and their effects. In fact, markets do not deliver big data, but very small data. A financial crises of 2007/8 occurred only once till date. So did the Euro crisis. Marktes behaved in a different way during the Covid-19 pandemia. A great experiment is quantitative easing, ZIRP and their long-term effects. A neural network simply cannot learn which effects occur under which conditions with so little data amounts.

 

What's new: The HEDGE21 multi sensor data fusion model isolates effects on currency markets. Proprietary MTISR sensor technology from HEDGE21 fuses the data delivered from several individual sensors that track currency markets from different perspectives. If a sensor reading is being posted to the fusion model, its data is compared with other sensor readings, and the effect of the deflection on the overall market assessment is given. If a sensor reading is declared plausible in this way, an interpreted, denoised view of a currency market is created that can be distinguished from white noise or mere portfolio shifts.

 

Why it matters: The HEDGE21 sensor technology MTISR will be available in all HEDGE21 controllers / virtual assistants via the Recognized Market Picture® as of August 1st, 2020 and improves the situational awareness of HEDGE21 virtual assistants.