FINANCE AS AN INDUSTRIAL SCIENCE

Marcos López de Prado †

First version: August 3, 2017

This version: January 18, 2018

________________________________
†
Senior Managing Director, Guggenheim Partners, New York, NY 10017. Research Fellow, Computational
Research Division, Lawrence Berkeley National Laboratory, Berkeley, CA 94720. E-mail: lopezdeprado@lbl.gov.
Web: www.QuantResearch.org

The statements made in this communication are strictly those of the authors and do not represent the views of
Guggenheim Partners or its affiliates. No investment advice or particular course of action is recommended. All
rights reserved.
 FINANCE AS AN INDUSTRIAL SCIENCE

ABSTRACT

Finance cannot become a rigorous science (in the Popperian or Lakatosian sense), however it can
still operate as an “industrial science”. This article describes the scientific method by which
industrial finance discovers through experimentation, and avoids false discoveries.

The full version of this article can be downloaded from this URL:
http://www.iijournals.com/doi/abs/10.3905/jpm.2017.43.4.005
http://www.iijournals.com/doi/pdfplus/10.3905/jpm.2017.43.4.005

Keywords: Big data, machine learning, high performance computing.

JEL Classification: G0, G1, G2, G15, G24, E44.

AMS Classification: 91G10, 91G60, 91G70, 62C, 60E.