Ingredients for Predicting Future

Following are the ingredients for predicting future trends. But don't be fooled by randomness. Even when you got all (some) of the following ingredients, your predictions would remain only predictions. Reality or actual future events may be different. So, a model you might design may not necessarily be a perfect model. As some quant once said, all models are not perfect, some models predict better than others. So believe in yourself and be ready to adjust your models if the trends change or new things emerge in the market. Good luck!

1. Best and the Brightest
Hunt out the best mathematicians, scientists, finance, quantitative and computer experts to design the best models and trading systems.

2. Data
Both the data sample period and varied data related to various elements depending upon the nature of model, for example weather, social media, news and other real world (financial and non-financial) data sets.

3. Computing Power
A huge power required to find correlations or patterns in the data. So one would need to build large distributed computing systems to find correlations and patters quickly.

4. High-end Mathematics
Latest trends in mathematics to find new ways of extracting patterns.

5. Trading Optimization
To be successful quant trader, the real task is to find a way to optimize trading ideas using big data.