Evolutionary modelling for finance
Why evolutionary modling makes sense for finance:
Linear models don’t.they assume a steady state our at least equilibrium state with normal variation which can be explained by some covariates
Finance has no steady state.
How to map market onto a species space? Equity prices? Price histories? Prediction functions?
Maybe all of those are genes,, do we add regulatory genes?,, how do we build an animal?
Over what timescale do we measure fitness, measure returns?