The debate about which computer algorithm is truly “the most important” rages on. Yet, in most circles, there are a few answers that are generally accepted (and they usually appear in this order):
- Binary search – the first non-trivial algorithm that most learn and still do today.
- Fast Fourier Transform (FFT) – amazing. When combined with Convolution theorem, it’s close to magic.
- Hashing – thought it’s not actually and algorithm, it is one of Computer Science’s most powerful ideas.
Now, there are a few others, but that’s them just above, for the most part. Wait. Hold up. We are talking about changing the world here. And despite our tech-savvy audience, this may all sound like gibberish.
Let’s back up a minute.
Just so we’re all on the same page, an algorithm may “sort of” be defined as an effective method by which to solve a problem, expressed as a finite list. In short, an algorithm might be best expressed as “a set of rules that precisely defines a sequence of operations.”
Now the list above certainly contains the ingredients of such iterations that have undeniably changed the way we connect with and “see” our world. But, today’s article is about something just a tad more mainstream (unless you are a developer and understand the sheer beauty of the previously listed examples.)
Time to switch gears. Know anything about the stock market?
Well, the best and most highly compensated traders on Wall Street have gained huge amounts of wealth with a benchmark of being correct on their trades approximately 56 percent of the time. To put that in perspective, that’s a mere smidge above 50 percent, or a simple flip of an unbiased coin. To them, the difference really is just a smidge.
Now traders don’t place trades on every stock. No, they gather information, widdle down their choices to a select few, and then try to make educated guesses about what’s to come. They use tons of software, formulas, theorems, gut feelings, historical precedent, and yes, algorithms as tools to make better decisions. Again, the great ones – they’re right about 56 percent of the time. And those people … trust me, they’re loaded (and regarded as super hero’s amongst the financial world’s elite.)
Now, keep in mind, the financial markets aren’t the only free trade market that garners the attention of all creatures great and small. Another one is resultant of all the action that takes place in the wide world of sports. You guessed it … wagering.
From Vegas, to Monte Carlo, to office pools, to high school locker rooms, wagers of all types are placed. Millions per day, in fact, with dollar figures extending beyond 10- to 100-times that. Internationally, this market (whether “above or below the line,” legally/geographically notwithstanding) is worth billions, upon billions … upon billions, of dollars.
So what’s the point?
Apparently, an upstart (or start-up, whichever you prefer) alliance of anonymous “Gray Suits” (allegedly a “coven” of mathematicians, computer scientists, finance guys, and perhaps one or two white-bearded wizards) have debuted their app, the Gray Suit Project, on both The App Store and Google Play (for Droid).
Here’s the thing, it predicts major North American sports outcomes at an unprecedented rate of nearly 65 percent. While the app is new, their audited results go back years. That means their new algorithm, is, well world-changing.
Well, they can’t predict the entire future. BUT … anyone with any sense can figure out what they CAN do. You see, when they pick (selections anointed as winners by their delicious, mysterious, and insanely private proprietary algorithm), they’re right a good bit more than half of the time. Yes, it seems they are predicting the future at a pace that means bankable results.
So, what’s the catch? Downloading the app will cost you 99 cents. Say what?
Now, if you want the day’s algorithm-selected picks for any of the particular sports on season … it’s another $1.99.
Um, yeah, a buck ninety-nine.
Are you thinking what I’m thinking? Right. Definitely not a serious price to pay for what amounts to MUCH more than a “smidge.” Something tells me these “Suits” are driven by something other than money. No, I would bet they are after something far bigger. They want to be right. They want to keep being right. And, while I don’t know for sure, I bet they aim to be right about a few more applications, beyond sports, as time passes – and, at least for now, it seems they’re beginning to get some attention. And I bet, they bet, that sports was the quickest way to get there.
Yeah, so I’m thinking this might be the just thing to DOMINATE my office football pool. Oh what, you’re not?
Find out more about the Gray Suit Project.