[Part 3] Manhattan Project of back testing

It’s week two documenting our overnight 17-year success (or failure) story of predicting future stock prices. Here are links to get you up to speed:

Part 1

Part 2

In 1984, perhaps the greatest cinematic movie to grace the silver screen was launched – Revenge of the Nerds

It’s about a group of socially awkward misfits that triumph over fraternity bullies.

The timing was impeccable.

Early pioneers like Bill Gates and Steve Jobs were making a killing in the home computer market.

Indeed, the nerds were having the last laugh, as every line of computer code is like a mini oil well that continuously pumps cash…

…and they continue to do so.

You see, many of the richest people in the world fully embraced computer technology.

Their companies “employ” millions of servers around the globe to do their bidding.

Gates, the late Jobs, Ellison, Bezos, Zuckerberg, Page, Brin, Ballmer, and Ma…they stand to make the most because of their leverage of technology – specifically from cloud computing.

Many possibilities spring up when you can link together thousands of computers to tackle a problem.

As you know, we’re doing just that – linking computers together to predict future stock prices with Project 88.

But dang it if it isn’t a bumpy road.

Not everything has been rosy on our path to predictable profits.

For example, cloud companies like Microsoft’s Azure don’t simply allow you to fire up 16,000 virtual machines (computers) and go to town.

You’re maxed out at 20 in the beginning. Then you have to request more.

Unfortunately, we didn’t get much help from tech support, so we ended up paying $1000/month to talk to someone within a reasonable timeframe.

We just wanted to go from 20 to 1000 cores. “Will you please allow me to spend money”?

It’s not like you can go knock on the door of one of these massive data centers. Heck, I just found out that their published location near Fresno is fake. It’s a secret.

I felt as helpless as a mute in handcuffs, but when that $1000 charge went through, my phone started vibrating across the table like it was possessed.

“Yes sir! We are on it. Tech support will upgrade you to 1000 batch cores in 24-48 hours,” she said in an Indian accent.

“Fantastic,” I thought.

Now we have a tool at our disposal that can do billions of pattern matches in seconds.

We have to make a supercomputer in order to find which settings work best.

This is no ordinary back test.

This is the Manhattan Project of back testing.

Those 1000 processors are going to be burning hot after we get done with them.

I’m totally geeking out right now.

While I’m not seeking revenge with Project 88, I love a good discovery.

I’ll share more with you soon…

Here's a demo of spinning up a massive 16,000 core experiment (30 seconds):

https://www.youtube.com/watch?v=pfCefFvGit8

Click here to view Part 4

Trade smart,

Dan “Prince of Proof” Murphy