The Mysterious Quantum Code of the Stock Market

London based hedge fund team of researchers lead by Ovidiu Racorean announced recently that fragments of a mysterious stock market quantum code have been found.

London based hedge fund team of researchers lead by Ovidiu Racorean announced recently that fragments of a mysterious stock market quantum code have been found. This astonishing finding was published on the arXiv preprint archive (arXiv:1507.02310).

The team of researchers focuses their work on harnessing the power of quantum computing to applications related to trading the financial markets. The remarkable advancement in the quantum computer technology leads lately the financial world to the idea that quantum computation will soon become the holy grail of trading the financial markets.

“I was stunned to notice, when simulated the trends of stocks in a portfolio on a quantum computation process, that their prices time series literally realize elementary quantum gates” says Ovidiu Racorean.

Quantum gates are the building blocks of quantum algorithms, the foundation of quantum computation. Quantum algorithms are designed to solve complex problems, which classical computers cannot handle, and consists of sequences of quantum gates joined together in a predefined order,

Encouraged by the initial results, researchers extended the quantic computing simulation to portfolios with growing number of stocks. The outcome was every time an even larger fragment of a quantum code. Finally, adding all the 30 stocks, even the Dow Jones Industrial Average market index can be written as a quantum algorithm.

Not everyone is convinced, however, about the existence of the stock market quantum code. “The idea of a quantum code that governs the changes in prices of all stocks on the market is so fantastic that we expect to be acidly criticized in the following days”, chuckled a member of the researchers team.

Further work will be necessary to prove the correctness of the findings. A better understanding of the quantum code of stock market may open a new era in trading the financial markets. It should be expected a fierce race for quantum computation on Wall Street, comparable to the race for speed the High Frequency Trading faced in the late years.   

“It sounds bizarre, but the future history of stock market may have been already written in a quantum code!”, concluded Racorean.

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Tags: financial markets, hedge fund, quantum algorithm, Quantum computing, stock market