Returning to his senior year of high school, he went all in and made billions by buying at the botto

Half an hour later.

The innermost private room in the teahouse.

Liang Wenfeng stood by the window, looking down at the wet stone path below.

The model that Bian Xuezhang just showed was indeed beautiful.

The backtesting curves are too smooth, the drawdown control is too stable, and the factor splitting doesn't seem like something one person could create in isolation.

People who work in quantitative analysis fear two things the most.

One type is completely useless, while the other type seems too useful.

The latter is often more dangerous.

"Mr. Bian."

Liang Wenfeng turned around and his first words were very direct.

Is it possible that your model is overfitting?

Bian Xuezhang paused for a moment, his hand holding the teacup still.

Xu Jin also looked at him.

The atmosphere in the private room froze instantly, and Chen Mo had no intention of answering for him.

He had high hopes for Bian Xuezhang, but no one is born a genius.

Bian Xuezhang was silent for a few seconds, then turned the computer back on.

"have."

Liang Wenfeng's eyes flickered slightly.

Bian Xuezhang pushed up his glasses, the screen light illuminating his somewhat pale face.

"So I eliminated three groups."

"The first group excludes years with extreme market conditions."

"The second group involves randomly shuffling a portion of the sample windows."

"The third group will separate stocks with poor liquidity, frequent trading halts, and large trading volume fluctuations for testing."

He clicked on a few pictures.

The earnings curve isn't as attractive as it used to be.

There was even a noticeable pullback.

Bian Xuezhang pointed to that section of the retreat.

"This is the ugliest part of the model."

Xu Jin leaned forward slightly.

Bian Xuezhang continued, "But it didn't die. After the parameters were adjusted, the returns decreased and the volatility increased, but the logic remained."

"If a model only makes money on the best-looking samples, that's an illusion."

"Only if it can survive in unattractive samples can it justify continuing to burn money."

No one spoke in the private room.

Liang Wenfeng stared at the screen for a long time before saying, "You must have taken a lot of beatings in the market."

Bian Xuezhang smiled.

"I was indeed beaten."

The atmosphere eased somewhat.

Chen Mo then spoke.

What is the magic cube missing right now?

Liang Wenfeng was surprised that he would suddenly get to the point and paused for a few seconds.

"I'm short of money."

But he didn't beat around the bush.

"We lack computing power, stable data sources, and more mature strategy frameworks."

Xu Jin added, "We have a team and some research results. But if we want to scale up, it's not something that can be solved by a few people locking themselves in a room and running backtests."

"very good."

Chen Mo looked at Bian Xuezhang.

"He has the model," Chen Mo continued, "I have the funds and the market resources."

"You have a team, a venue, and mathematical and engineering capabilities."

"Since we share the same idea, there's no need for us to do things our own way."

Liang Wenfeng's eyes finally changed.

"What does Mr. Chen mean?"

"Start a new company."

Chen Mo said, "We specialize in quantitative analysis."

Xu Jin tightened his grip on the teacup.

Before they came, they considered cooperation, financial support, and even becoming Chen Mo's technical advisor.

The only thing I never expected was that the other party would mention a new company right away.

Chen Mo picked up the sticky note on the table.

The pen tip falls.

To explore in depth.

Liang Wenfeng stared at the four characters; they didn't look like the name of a financial company, but rather like the name of a laboratory.

"Huanfang Technology contributes its team, facilities, and existing research results, holding a 20% stake."

Chen Mo looked up at the two of them.

"I will contribute capital, data channels, transaction resources, and Bian Xuezhang's initial model, holding an 80% stake."

"The company's initial funding was 200 million yuan."

"Two hundred million?"

Xu Jin almost choked on his tea.

He quickly put down the cup, the bottom of which hit the table with a soft sound.

Liang Wenfeng also raised his head.

This number is too much for them.

Magic Square's entire portfolio is so vast that even if you laid it all out, it wouldn't be enough to show off.

They're still figuring out how to save money on server purchases, how to get data cheaply, and how to gradually recruit staff.

Chen Mo, however, threw out 200 million.

"Mr. Chen."

Liang Wenfeng stared at him.

"Aren't you afraid we won't be able to make it?"

"Afraid."

Chen Mo answered quickly.

Now it was Liang Wenfeng's turn to be taken aback.

Chen Mo smiled and said, "That's why I'm voting for you. If something were absolutely certain, we wouldn't be sitting here discussing it."

He then continued, "Bian Xuezhang serves as the head of the technology department, responsible for the iteration of the existing model framework."

"General Manager Liang and General Manager Xu are responsible for team building, research system, and engineering implementation."

"I'll handle the trading, funding, and risk control aspects."

Liang Wenfeng did not agree immediately.

He looked at the note and tapped his fingertip lightly on the rim of the cup.

When can the funds be used?

Upon hearing this, Xu Jin knew that he was interested.

Chen Mo said, "The first payment of 50 million will be deposited into the new company's account at 10:00 AM tomorrow."

Liang Wenfeng's eyes brightened slightly.

"I'd like to order the first batch of servers."

"Can."

"The data source needs to be repurchased."

"Can."

"We need to recruit more people; we can no longer rely on small teams."

"Can."

Chen Mo put down his teacup and added a sentence.

"You'll be the chairman of the board. I'll just be responsible for providing the funds. Major decisions will be discussed in meetings, and you'll have the final say on budgets, procurement, and personnel."

Liang Wenfeng looked up in shock: "President Chen trusts me that much?"

Chen Mo said calmly, "Trust those you employ, and don't employ those you don't trust."

Liang Wenfeng's Adam's apple bobbed, and he exchanged a glance with Xu Jin: "Count us in for a deeper exploration."

Bian Xuezhang was a beat slow to react. He looked at the four words on the table, his eyes turning slightly red.

"I will continue to work on the model."

Chen Mo glanced at him.

"It's not about continuing."

"It's done."

Four celadon teacups clinked together.

It was developed with in-depth research and was released eight years ahead of schedule.