Sunday, September 19, 2021

What do Data Scientists pay to obtain numerai’s financial data?

numerai's

Over the past few months, there has been a boom of new investors trying their luck in the stock market and also dabbling in cryptocurrency, and data scientists pay them to obtain numerai’s financial data. Being bored at home made a lot of people learn the art of stock trading and invest in the stock market and various NFTs and cryptos to earn some revenue on the side while being locked up in their homes.

One such platform where skilled and talented data analysts and scientists can use their talent to earn some revenue in the form of cryptocurrency is the numerai’s.

Before getting to know about Numerai let us go through other key terms that will help us understand more about the subject.

What do you mean by Stock Market?

The stock market is the collection of markets and exchanges where standard exercises of selling, purchasing, and issuances of shares of publicly held organizations happen.

There are a lot of factors affecting the stock market. The hedge fund is one of them.

CryptoCurrency The Next Big Thing

According to popular sources of information, Cryptocurrency is defined as follows:

A cryptocurrency or cryptocurrency, commonly called crypto is a form of digital data that acts as a medium of exchange where the ownership of these tokens is recorded in a secure database using very strong cryptography to provide secure transactions and the production of new coins or the exchange of them.

Popular cryptocurrencies such as Bitcoin(BTC), Ethereum(ETH), and Dogecoin(DOGE) are examples.

What is a Hedge Fund?

Popular information sources have defined hedge funds as follows: 

A hedge fund is a pooled investment that exchanges moderately fluid resources and can utilize more intricate exchanging, portfolio development, and risk management methods to further develop the performance, like short selling, leverage, and derivatives.

What do you mean by numerai’s?

Numerai is a crowd-sourced hedge fund based in California. It was created by a South African scientist by the name of Richard Craib. Numerai is an AI-run hedge fund and also the world’s first AI-run hedge fund to put out its own cryptocurrency called Numeraire (NMR).

Numerai is a data science tournament where you write complex machine learning programs and algorithms to predict the movement of the stock market using the financial data given to the participant for free. You can download the financial data to model your program from numerai’s website for free.

These data sets are free and are comprised of high-quality financial data that has been cleaned and regularized.

The following are ways you can start to earn your own Numeraire (NMR).

Financial Data

The data are presented in numerous columns and rows named as follows:

  • Id, era, features, and target.
  • Each id gives the data sets corresponding to a given era.
  • Each id also projects the various values which represent the different quantitative characteristics( features) of a particular stock at different points in time.
  • The target represents the abstract measurement of the performance of a particular stock 4 weeks into the future.

Programming

Using the financial data that can be freely downloaded from the official numerai’s website, talented data scientists and analysts can program their code that is capable of predicting the future trend of the stock market.

As a participant in the numerai’s tournament, it is your objective to find the future target of a particular stock in the stock market.

As a data scientist or a programming enthusiast, you are given the freedom of using any programming language of your choice.

You can check out numerai’s website for various examples of programming models which can be used as a reference.

How can you Submit your program?

Every week new financial data is released by the website which can be downloaded for free. You have to submit your prediction about the stock before the given deadline. Every Saturday at 18:00 UTC new rounds are opened and deadlines are always set at 14:00 UTC every Monday.

Evaluation

Your program is scored depending upon the correlation(corr) between the target and your predictions. The greater the correlation(corr) better the score you would get.

Your programs are valued over a period of 4 weeks. Since you are allowed to submit a new program every week, you will receive multiple scores every week.

You will be able to view your score on the model profile page available on the website. 

Staking

You can stake NMR on your program/model which will result in burning or earning NMR based on the performance of your program during the evaluation. Higher the values of correlation(corr) and other factors enable you to gain more NMR.

The staking means storing NMR in a smart contract on the Ethereum blockchain. As long as you don’t withdraw your stake, numerai’s has the permission to add or burn NMR from your stored NMR.

If you were to decrease your stake, NMR withdrawn will be returned back to your wallet after a 4-week delay.

Payment

Your payment depends on the stakes and your correlation(corr) scores. If you score a high correlation (corr) score and put a high stake on it you will get a huge payout, whereas if you were to get a negative correlation(corr) score your NMR will get burned. 

Leaderboard

A leaderboard is presented after sorting all the different programs submitted by anonymous talented data scientists and analysts from all over the world. The scores are sorted according to correlation values and other functions depending on the performance of your model such as meta-model contribution (MMC) and feature neutral correlation (fnc). 

Comparing the efficiency of your model with other models can help you improve and update your program.

Bounties

Numerai’s also rewarding you with their cryptocurrency if you help them improve the functionality of their numerai’s website. They reward you if you were to find any bugs or security risks that were left undiscovered.

Bounties are given based on the severity of the bugs found

For example:

  • Small bugs like glitches, broken links, broken emails pay you about 0.1 to 1 NMR
  • Minor issues that don’t affect user funds and transactions would earn you between 0.1 to 1 NMR.
  • Data errors and unable to submit or withdraw stake issues would fetch you about 1 to 5 NMR.
  • Major bugs which could pose a security threat would earn you a maximum of about 100 NMR.

What do you mean by Numeraire?

Also known as NMR is an Ethereum based platform allowing programmers and data scientists to use their expertise in creating machine learning models that are used to predict the movement of stocks in the stock market. It is also the first cryptocurrency to be developed by a hedge fund. The main aim of Numeraire is to allow data scientists and coding enthusiasts to utilize their skills in more practical and effective data prediction models.

The current Market value of Numeraire stands at $40.85/Rs.3,038.41 and is up by 2.70%.

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Conclusion

Numerai’s provides an excellent platform for talented data scientists and programmers to use their talent to compete amongst other talented fellow coders to earn some revenue on the side. They reward you with their listed cryptocurrency called Numeraire as we have discussed above. It is the perfect platform for data scientists to showcase their talent in creating future predicting machine learning models.

They also give away rewards (give cryptocurrency numerai’s as a reward) for providing them with suggestions on how to improve their purpose. They also provide financial data that you can work on to create your machine learning models for free on their website. So if you are a talented programmer or scientist do check Numerai out and gauge your skill level against many other talented and skilled programmers by competing against them in a data science tournament hosted by Numerai. 

What do Data Scientists pay to obtain numerai’s financial data?

I am pursuing an MCA (MASTER OF COMPUTER APPLICATION) from IGNOU. I did my BSc honors degree from Kanpur University. I also have a certificate of “fundamental of digital marketing” by Google and “fundamental of remote sensing” by IIRS. I am keenly interested in the Data Science and data analytics field. That is why I write articles on this kind of topic. I have been working as a blogger for Edu Data Online web since January 2021.

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What do Data Scientists pay to obtain numerai’s financial data?

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I am pursuing an MCA (MASTER OF COMPUTER APPLICATION) from IGNOU. I did my BSc honors degree from Kanpur University. I also have a certificate of “fundamental of digital marketing” by Google and “fundamental of remote sensing” by IIRS. I am keenly interested in the Data Science and data analytics field. That is why I write articles on this kind of topic. I have been working as a blogger for Edu Data Online web since January 2021.