Good afternoon, it's Jeffrey Cohen
The markets are on fire so it is harder to focus on math, matrices, and tuning algorithms. However, we have a theoretical breakthrough last night, and will work to test it over the next days/weeks. Promising idea. We are encouraged.
The biggest issue for us is that we run our algorithm on the D-Wave system and it has to be placed carefully on the almost 6,000 quantum bits available to us. Each placement is a stock, and the stocks need to be connected to each other. However, since there are only 6,000 positions, we can only connect 118 stocks. In reality, the system handles 64 or 80 stocks better as the placement or loading of the stocks on to the quantum bits can me more resilient.
So, we have to get our best 'bang for the buck' with 64 or 80 stocks, and up to 118 stocks. We can run our algorithm 100 or more times (think of this as generations in a genetic algorithm).
We also reviewed the D-Wave Systems 10-Q from November 2022 today (again). The financial situation of the company is not encouraging. There is not enough revenue to support the significant investments in research and development, and to cover the growing costs of General and Administrative expenses. Many of those expenses may be tied to being a public company listed in the US. The liabilities seem to be slightly larger than the assets...so the company needs to either raise more money or transform their early-stage startup in to a 'mean and lean' technology firm.
We have always appreciated their technical support and assistance, and their politeness and supportiveness of our new quantum computing startup. We think the team at D-Wave is the best and we hold a small position of common stock warrants as a show of support that we believe in the future of this company.
We will be trying to work a new approach on how we load our QUBO (V*M*V^T) onto our matrix, and the lift and shift required to get the best answers. This will take some time and effort, and the 'a-ha' moment for a new approach came last night.
For more information, contact Jeffrey Cohen at email@example.com.
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Full-time investment advisor and student of the financial markets.