Best Performing Models on Numerai

[Jrinne]

Numerai models works differently from traditional models. There are no turnover, number of positions and things like that.

The model performance is calculated based on the correlation between the signal provided by the model (value) and the target (after neutralization).
The higher the correlation the better the performance.
To simplify, if for this week the correlation is 0.05 and the model is 2x leveraged then the model will earn 0.05*2=0.1 or 10%
If the user has stacked 10 nmr (the numerai token) then he will earn 1 nmr on that round.
If the correlation is negative then his tokens are burned.

This is the reason you see very high and very low annual performances.

This is obviously interesting and pertinent. So probably, none of the above discussion is related to how Numerai might do.

I do not know what Numerai is doing as far as machine learning. But I would love to use this data in a factor analysis, myself.

Would it work? Look at the fund data to find out, I guess. I am still probably missing the big picture on this but thank you Azouz for pointing out the above (quote).