Build your own AI: how to teach GPT to search the web and execute code

Large Language Models such as GPT-3, ChatGPT, Bing AI, and Google Bard have recently demonstrated stunning advances in conversational capabilities, text summary, translation, code creation and many other applications. Microsoft’s new AI-powered search assistant Bing showed how these capabilities can be further enhanced by allowing the AI agent to access conventional search engines and read … Read more

Probabilistic alpha and beta: quantifying an uncertain edge

In finance, the performance of an asset is often quantified by alpha (the excess returns above a benchmark return) and beta (the volatility or risk of the asset relative to a benchmark). In this post, we develop time-varying, probabilistic versions of alpha and beta, and go through the process of using these new metrics to build a dynamic stocks/bonds portfolio to improve on the classic 60/40 portfolio.