Ron Brown co-founded Trading Sciences in 2006, and serves as the principal software architect for all of Trading Sciences’ technologies and funds. Ron’s primary role in Trading Sciences is to design, code, optimize and implement the company’s analytic technologies, portfolio risk management methodologies, and defensive trading technologies. His specialization in Trading Sciences consists of pioneering state-of-the-art technologies that offer better risk management and trading analytics both on an individual security and on a portfolio level. Ron brings over 12 years of analytical experience in industry and 20 years experience as a software author and numerical analyst.
After graduating with an Engineering degree from Purdue, Ron refined his analytical skills with positions at 3M Company, Eastman Kodak, and several Silicon Valley high-tech firms. In 1988, he founded AISN Software and successively authored and introduced four expert systems software products that automated the difficult processes of fitting curves, surfaces, peaks and overlapping waveforms. Analyses that took weeks or months to derive with substandard results suddenly were possible in minutes with an optimal result. These products have been marketed and sold by Jandel Scientific, SPSS, and currently by Systat Software. Today, over one hundred thousand scientists, engineers, and quantitative financial modelers from around the world have purchased Ron’s ground-breaking software packages across a diverse spectrum of sophisticated modeling applications. Top-tier clients include almost all Fortune 500 companies, Nobel prize-winning researchers and technologists, NASA, the National Institutes of Health (NIH), nearly all government research laboratories, large financial institutions and most of the major scientific laboratories and engineering firms in the world.
Ron’s initial product, TableCurve 2D™, first released in 1989, solved the difficult problem of finding optimal parametric functions that best fit empirical data for the scientific and engineering communities. TableCurve 2D’s innovations included visual interactive model selection, automated linear and non-linear fitting, advanced robust regression and state-of-the-art statistical hypothesis testing for normality. The automated paradigm in this product allowed users to solve curve-fitting problems in minutes when historically weeks’ worth of regression analysis was required. Now in its eighth release, TableCurve 2D™ continues to be the world’s top-selling dedicated curve-fitting software.
A special innovation in TableCurve 2D™ was fitting dozens of density functions, many of which incorporated fat tails, as early as 1991.
Ron then authored PeakFit™, a program designed to solve the formidable problem of characterizing overlapping peaks in spectroscopic and chromatographic data. The program contains 90 built-in density models in support of quantifying hidden peaks and modeling non-normal densities. Many published papers have relied upon PeakFit™ to deconvolve and quantify hidden peaks. PeakFit™ introduced a number of heretofore unpublished density models, several of which Ron either independently developed or developed in collaboration with several leading PhD physicists. These included a non-linear chromatography model, a gamma ray-Compton edge model and the GMG, a new convolution model. It also offers true mathematical peak deconvolution to remove the smearing introduced by imperfect instrumentation. PeakFit™ has remained the standard in peak fitting technology for over 15 years and has been used by tens of thousands of industry specialists.
In 1993, Ron released TableCurve 3D™, the world’s first dedicated surface-fitting program. The complex problem of modeling surfaces was addressed by state-of-the-art 3-D graphing technology, including live surface animation and numeric technology that fit 450 million built-in models. Ron incorporated the same automated technology that set TableCurve 2D™ apart into the TableCurve 3D™ paradigm. TableCurve 3D™ introduced hundreds of unique composite non-linear models and included a novel best subset fitting algorithm that dramatically reduced the computation time from hours down to seconds.
In 1999, Ron authored AISN Software’s fourth product, AutoSignal™, an application designed to mine the maximum possible cyclic information from time series data. AutoSignal™ included state of the art Fourier, Eigen, and Continuous Wavelet spectral analysis and filtering as well as two cyclic forecasting methods that were designed for the financial modeling arena. Its innovations include the first non-linear fitting of multiple overlapping waveforms as a forecasting method for prices and volatility. It also offers visual principal component autoregressive forecasting and many innovations in wavelet analysis and critical limits in Fourier analysis. Although marketed to scientists, AutoSignal™ is currently being used within the investment community.
Trading Sciences now owns AutoSignal and its analytic and visualization technologies have been used as the software foundation for the venture’s risk management applications for portfolio and options analysis.
After AISN Software sold the TableCurve and PeakFit products to Systat Software, Ron turned his focus towards the financial arena. He was introduced to the work of Ed Seykota, one of the pioneers of Turtle Trading, and began writing software for trading systems. During this same time, Ron partnered with Prism’s founder, Dr. Harvey Motulsky, on an NIH grant to devise a better method for estimating and detecting outliers in the small biomedical data sets typically seen in the medical sciences. In the course of this work, Ron developed new and innovative technologies for estimating distributions and their outliers or fat tails which have been incorporated into Trading Sciences’ robust risk-management and options probability estimation technologies.
Since its inception in 2006, in conjunction with co-founder Jaimi Goodfriend, Ron has authored innovative software and technology for risk-management, portfolio hedging, and security screening. These technologies are being incorporated into automated trading systems and strategies that Ron and Jaimi are jointly developing. A firm advocate of proving technology before it is released, a number of the venture’s trading systems continue to evolve and undergo refinement in private funds where only the personal monies of the principals of Trading Sciences are currently traded.
Ron’s current research and development interests include bringing his expertise with authoring modeling software to the development of state-of-the-art trend and predictive trading systems. Such systems use the trend/counter-trend or weak predictive properties of the market in well-defended automated paradigms.
