Ideas

  • Sea-Thru Sea

    An engineer and oceanographer, Derya Akkaynak, created an algorithm that removes the water from underwater images – meaning it takes away the haze & tint that come with most underwater photos. It doesn't require a color chart either (though it does need distance information it gathers through numerous photographs from different angles). 

    Check it out. 

     

    via ScientificAmerican 

    From the abstract: 

    The Sea-thru method estimates backscatter using the dark pixels and their known range information. Then, it uses an estimate of the spatially varying illuminant to obtain the range-dependent attenuation coefficient. Using more than 1,100 images from two optically different water bodies, which we make available, we show that our method with the revised model outperforms those using the atmospheric model. Consistent removal of water will open up large underwater datasets to powerful computer vision and machine learning algorithms, creating exciting opportunities for the future of underwater exploration and conservation.

    Essentially, the algorithm goes through every pixel and color balances the image based on collected data on distance/color degradation.

    T0xSYRV

    As with most algorithms of this type – the more data we feed it, the better it gets. Sea-thru already has great applications for furthering ocean-based research, but the follow-up question is can this algorithm be extrapolated outward to deal with other atmospheric conditions outside of water – smog, etc. 

    What other uses can you imagine?  It is not hard to imagine how this could be applied to market data either … Interesting stuff! 

  • Here Are Some Links For Your Weekly Reading – November 17th, 2019

    The holiday season is coming fast.

     

    191117 Holding Off the Holidays

     

    Here are some of the posts that caught my eye recently. Hope you find something interesting.

    Lighter Links:

     

    Trading Links:

  • Investing In Your Future

    I think about investments a lot … which makes sense given my profession. 

    Yet, there are three key investments I think are more important than any monetary investment you can make. 

    The first is in yourself – in your physical and mental health. I recently spent a whole month introducing my approach. 

    Physical and mental health was a major topic at last weekend's Genius Network Annual Event in Arizona.  I enjoyed listening to speakers like Peter Diamandis, Andrew Weil, Christopher Voss, and Dave Asprey – which brings me to key investment #2.

    Find Your Genius Network

    "You are the averrage of the five people you spend the most time with." – Jim Rohn

    I have always believed that you can predict a lot about your future, based on the quality of the people you spend the present with. That is why I think participation in quality peer groups is critical. Peer groups help us set higher standards for our behavior, help us aim higher in our aspirations, and they help us stay better focused and committed to big-picture goals.

    I belong to several executive and business leader peer groups like Genius Network,  EO or Strategic Coach—groups that double as advisory boards, counselor’s offices, and idea factories. They allow me to see, hear, and discuss things I don't normally think about, talk about, or even notice.  Peer groups bring blind spots to my attention and keep me fully connected to trends that are transforming industry on a global scale.

    I've gained partners, life-long friends, and ideas that will last a lifetime. I've also started taking my son, Zach, to these events so he can get a headstart. 

    75446810_10162373783270065_9179722954240425984_n

    Dan Sullivan, founder of Strategic Coach, met my son and proclaimed "The book reader!" 

    Good memory. 

    Which brings me to my third key investment – and the one I'm most proud of. 

    Spread The Wealth

    It is not enough to have a good mind; the main thing is to use it well. -Rene Descartes

    Like many parents, I wanted to teach my children that, to a large extent, they control what happens to them. One of the first ways I did that was to set up a "game" for them to earn video games. Some parents try to limit the amount of time their kids spend watching TV or playing video games.  Instead, my kids earned their games by reading books. Here is a photo from way back then.

    IMG_2849

    Paid With Play.

    Here's how it worked. Every 10 books earned them a video game, and every 100 books earned them a video game console. When they finished a book, it was their right, and my obligation, to take them to the bookstore for us to pick up the next book together. Likewise, when they finished the requisite number of books, it was their right, and my obligation, to take them to the computer store (does anyone remember CompUSA?) for them to choose whatever game (or console) their heart desired.

    How Can You Encourage a Jump to the Next Level?

    “Don’t just read the easy stuff. You may be entertained by it, but you will never grow from it.” – Jim Rohn

    There came a point when I wanted one of my sons to start reading grown-up books. He was comfortable reading a certain type of book, and didn't want to read the kind of books that I read. So, I created a bonus system that counted a particular book as three books. I didn't force him; I just let the easier path to a reward "whisper" in his ear what to read. Once he finished that, he never went back to teen fiction.

    It's a great way to learn about your kids.

    I used the bookstore to get a sense of how the boys were doing. For example, I might say "I notice that you read five books in that series, maybe you'd like this book". Or, "That sure is a lot of science fiction; what was the last biography you read?" For the most part, though, I didn't care what they read. The key was to get them to want to choose certain books for their own reasons. Ultimately, their preference meant they were learning to love reading – and once you love reading, you'll eventually branch out on your own.

    It Puts Them In Control of Their Destiny and Rewards.

    My younger son likes competition. He also broke or misplaced many things. So, in order to earn back the Game Boy unit that he lost, I challenged him to read five books in five days. These weren't easy books either. It was designed to stretch him, and also to teach him that he could read a book a night. The bet was that he either finished all the books in the allocated time, or none of them counted towards games or Game Boys. On the other hand, if he read a book a night for two weeks, not only would he get to have his Game Boy back, the books would count towards a game too. It worked like a charm, and we were both happy.

    So, Who Got the Better Bargain?

    To end the game, as they entered their teenage years, I upped the ante a little. 500 books meant they got a laptop of their choice and had beaten the system. Both boys cashed in … and probably felt like they were taking advantage of their dad. I got what I wanted, though; my boys love reading, and I was able to teach them two key ideals.

    1. The secret to growth is to constantly challenge yourself
    2. You can accomplish anything you put your mind to … one step at a time.

    That is an investment that pays dividends for a long time.

  • Here Are Some Links For Your Weekly Reading – November 10th, 2019

    Here's a quick reminder about Veterans Day.
    231693

    Here are some of the posts that caught my eye recently. Hope you find something interesting.

    Lighter Links:

     

    Trading Links:

     

     

  • A Roller Coaster of Emotions

    I recently saw this video during a presentation.

    It's hilarious – and a great reminder that it doesn't matter how simple something is (if the stakes are high enough) and the environment is distracting enough. 

    That's where automation comes in. Enjoy. 

     

    Eliminating fear and greed are great steps to take in the pursuit of eliminating discretionary mistakes.

    Think about how many other places this video explains the "why" behind disappointing results.

  • 90th Anniversary of Black Thursday

    This past Thursday was the 90th anniversary of Black Thursday, a day when sellers on Wall Street panicked and closed approximately 13 million shares on the NYSE … causing 5 billion in immediate losses and spurring the Great Depression, easily the worst stock market crash in US history. 

    GettyImages-51311238-585d7e163df78ce2c31d3706

     

    With 90 years of education, technology and progress under our belts, we can look back at their mistakes assuming that it could never happen again – but could it? 

    The years prior to 1929 were filled with post-WW1 optimism and massive speculation. The combined net profits of 536 manufacturing and trading companies in the first six months of 1929 showed an increase of 36.6% over 1928, itself a record half-year. Rural Americans flocked to cities to take part in the excess of the Roaring Twenties. Stock prices were rising and there was massive economic growth. Like many 20 years olds, the '20s was a period where Americans felt invincible, right up until October 24th of 1929. We almost made it out of the decade.  

    On the day the 1929 Crash started, 11% of the Dow's value was lost by the opening bell. There was so much trading that the ticker tape reports were backed up. Traders had no idea of the true value of the stocks. Panic.  Suddenly, 5 billion dollars was gone, along with optimism and trust in the system. By Black Tuesday, several stocks sat without buyers and the Dow drops another 12%.  Collective confidence shattered.  Psychological traumas compounded until there was widespread economic PTSD.  Uncertainty spread like wildfire. Owners of businesses were unsure if they could get credit, workers were uncertain of job prospects or whether they'd get paid. As a result, consumption dropped, businesses failed, banks followed, and shortly thereafter, so did the Great Depression. 

    From the peak of the Dow (September 3, 1929) to the bottom of the Great Depression (July 8, 1932) the Dow lost 90% of its value. 

     

    Human Nature is Human Nature

     

    We've since instituted many measures to protect businesses, banks, and consumers, including measures to suspend trading in periods of rapid decline (like the Securities Act of 1933 and the Securities Exchange Act of 1934). As well, we have a better understanding and tracking of economic barometers like car sales, real estate, etc. 

    The reality is that in various scales and timeframes human traders undergo the same issues time and time again. It only becomes a talking point when it becomes painful enough. 

    It shouldn't take mass unemployment and economic contraction for us to understand the dangers of speculation, the dangers of human fear, greed, and discretion, and the dangers of poor economic theory. 

    Human fear and greed will likely play less of a role in markets going forward.  Increasingly more of trading volume is algorithmic.  And increasingly more of the decisions are made with AI using more data and shorter time frames.  As a result, while I expect increased volatility, I also expect increased opportunity.

    Keep in mind that there is a difference between guessing and knowing … and knowing is more profitable.  The corollary is: if you don't know what your edge is … you don't have one. 

     

    If You Don't Know What Your Edge Is You Don't Have One _GapingVoid

     

    Here's to a great last few weeks of 2019!

  • Here Are Some Links For Your Weekly Reading – October 27th, 2019

    231162

     

    Here are some of the posts that caught my eye recently. Hope you find something interesting.

    Lighter Links:

     

    Trading Links:

  • Happy Halloween: The Trick To Treats

    Good data visualizations are few and far between. Bad data visualizations spread lies, misrepresent content, or are sometimes just plain unreadable. 

    In honor of Halloween, here's an example of a fun data visualization put together by Mariona Banyeres based on FiveThirtyEight's "The Ultimate Halloween candy power ranking." Compared to simpler charts it may be harder to read, but it's interactive, it's themed, and if you hover over points, it will add extra context. Click to go to Mariona's interactive Tableau DataViz. 

    Halloween

    Mariona Banyeres via FiveThirtyEight

     

    To skip the data visualization, here are the results of FiveThirtyEight's competition. 

    Screen Shot 2019-10-25 at 4.43.38 PMvia FiveThirtyEight

    Hope you have a Happy Halloween.

  • Gartner’s 2019 Hype Cycle For Emerging Technologies

    Technology is a massive differentiator in today's competitive landscape. 

    Sorting through predictions of which new technologies are going to impact the world and which are going to fizzle out can be an overwhelming task. I look forward to Gartner's report each year as a benchmark to compare reality against. 

    Last year, Gartner reported Deep Learning and Biochips were at the top of the hype cycle – in the "peak of inflated expectations." While I'm excited about both industries, there was certainly more buzz than actual improvement in those spaces last year. Excitement almost always exceeds realistic expectations when technologies gain mainstream appeal. 

    What's a "Hype Cycle"?

    As technology advances, it is human nature to get excited about the possibilities and to get disappointed when those expectations aren't met. 

    At its core, the Hype Cycle tells us where in the product's timeline we are, and how long it will take the technology to hit maturity. It attempts to tell us which technologies will survive the hype and have the potential to become a part of our daily life. 

    Gartner's Hype Cycle Report is a considered analysis of market excitement, maturity, and the benefit of various technologies.  It aggregates data and distills more than 2,000 technologies into a succinct and contextually understandable snapshot of where various emerging technologies sit in their hype cycle.

    Here are the five regions of Gartner's Hype Cycle framework:

    1. Innovation Trigger (potential technology breakthrough kicks off),
    2. Peak of Inflated Expectations (Success stories through early publicity),
    3. Trough of Disillusionment (waning interest),
    4. Slope of Enlightenment (2nd & 3rd generation products appear), and
    5. Plateau of Productivity (Mainstream adoption starts). 

    Understanding this hype cycle framework enables you to ask important questions like "How will these technologies impact my business?" and  "Which technologies can I trust to stay relevant in 5 years?"

    That being said – it's worth acknowledging that the hype cycle can't predict which technologies will survive the trough of disillusionment and which ones will fade into obscurity. 

    What's exciting this year?

    It's worth noting that in this edition of the hype cycle, Gartner shifted towards introducing new technologies at the expense of technologies that would normally persist through multiple iterations of the cycle; 21 new technologies were added to the list. For comparison, here's my article from last year, and here's my article from 2015. Click on the chart below to see a larger version of this year's Hype Cycle.

    CTMKT_741609_CTMKT_for_Emerging_Tech_Hype_Cycle_LargerText-1via Gartner

    This year's ~30 key technologies were selected from over 2000 technologies and bucketed into 5 major trends:

    • Sensing and Mobility represents technologies that are gaining more detailed awareness of the world around them like 3D sensing cameras, the next iteration of autonomous driving, and drones. Improvements in sensor technology and their communication through the IoT is leading to more data and more insight. 
    • Augmented Human builds on the "Do It Yourself Biohacking" trend from last year. It represents technologies that improve both the cognitive and physical abilities of humanity – technologies like biochips, augmented intelligence and robotic skin. The future is bringing implants to extend humans past their perceived limits and increase our understanding of our bodies; biochips with the potential to detect diseases, synthetic muscles, and neural implants. Many of my friends believe this realm will elongate human lifespans. 
    • Postclassical Compute and Comms represents new architectures of classical computing technologies like 5G or nanotech – it results in faster CPUs, denser memory and increased throughput. Innovation is commonly thought of as new technologies, but better versions of existing technologies can provide just as much value – and disrupt industries in a very similar way. 
    • Digital Ecosystems are platforms that connect various types of "actors." They create seamless communication between companies, people and APIs. This enables more efficient decentralized organizations (and decentralized autonomous organizations) and allows constant adoption of new evolutions in technology. Examples of this technology are the decentralized web, synthetic data, and decentralized autonomous organizations. 
    • My wheelhouse, Advanced AI and Analytics is an acknowledgment of new classes of algorithms and data science that are leading to new capabilities, deeper insights, and adaptive AI. The future of this space involves more accurate predictions and recommendations on smaller data sets. More signal. Less noise.  

     

    Looking past the overarching trends of this year, it's also fun to look at what technologies are just starting their hype cycle. 

    • Artificial Tissue (Biotech) could be used to repair or replace portions of, or whole, tissues(cartilage, skin, muscle, etc.)
    • Flying Autonomous Vehicles can be used as taxis, but also as transports for other things such as medical supplies, food delivery, etc. Amazon and Uber are likely excited about this development – and expect it in the next couple of years. 
    • Decentralized Web builds on the same arguments blockchain creates against normal currencies. Because the mainstream centralized web is dominated by massive and corporate-controlled platforms like Facebook and Google, the decentralized web movement strives to enable free speech and increased access to those users whose access to the internet is strictly regulated. 
    • Transfer Learning refers to the ability of an AI to solve one problem and apply that "lesson" to a different but tangential problem. When AI becomes able to generalize knowledge more abstractly, you will see a massive spike in utilization. 
    • Augmented Intelligence complements humanity instead of replacing them with robots. To be clear – Augmented intelligence is a subset of AI, but a different perspective/approach to its adoption. 

    AI has been around since the '60s, but technological advancement and increased data mean we are now in an AI spring after decades of stagnation. 

    Many of these technologies have been hyped for years – but the hype cycle is different than the adoption cycle. We often overestimate a year and underestimate 10. 

    Which technologies do you think will survive the hype?

  • Here Are Some Links For Your Weekly Reading – October 20th, 2019

    Free speech

    Here are some of the posts that caught my eye recently. Hope you find something interesting.

     

    Lighter Links:

    Trading Links: