Interview with Dr. David Moche
March 29, 2021
Dr. David Moche was born in Sarcelles, Paris, on January 15th 1976. He attended high school in Tel Aviv. During these school years, he became a distinguished mathematician and earned a reputation as one of the top computer programmers for his age group.
After graduating high school, he was offered a place to study Mathematical Economics at Gettysburg College, Pennsylvania. It was during his freshman year that he began to take an interest in finance and banking. He later moved to Birkbeck, England, where he went on to complete a PhD in Data Science at the University of London.
Upon completing his PhD in 2002, Dr. Moche remained in London where he joined Fulcrum Asset Management as their Principle Quantitative Strategist and Portfolio Manager of their Multi-Asset Volatility Fund.
In 2007, he returned to the U.S. to pursue a career in quantum computing with IBM as a quantum research analyst. During his 5 years with IBM, he conducted research in Boston and went on to graduate from the Quantum Computing program at MIT.
Dr. Moche left the U.S. in 2012 and returned to Israel to establish his own company. We are pleased to invite him today to get know more about him.
Interviewer: Hello and welcome to Scitech Daily. We are extremely happy to continue our “Inside Quantum Week“ by welcoming Dr. David Moche, founder and CEO of Qfinity labs in Tel Aviv, Israel.
How are you today, Dr. Moche? I hope you are doing well in this current climate. How are things in Israel at the moment covid wise?
Dr. Moche: Good morning Jasmine, thank you for inviting me. The situation is improving. We are looking forward to things getting better.
Interviewer: Hey, the pleasure is all ours! So we just gave our viewers a short introduction of yourself. Could you tell us a bit about how it all started for you at Qfinity?
Dr. Moche: Yes sure! Our incredible quantum adventure began with my friend Emilio Rossi in 2013. We moved to Israel and began our company with just 4 people and finally end up with 42 colleagues. In 2019, we partnered with FVP trade, where we run an algorithm method we call F1, which we use in conjunction with a Monte Carlo simulation. This create a specialized trading strategies, and after many years of hard work we are finally able to provide more precise results.
Interviewer: Ok. And can you explain to us what quantum computing is? We understand that it’s pretty fast, but can you give us an insight into just how fast it is?
Dr. Moche: To make it simple as I can, a quantum computer is a super powerful computer, with revolutionary technology. The average calculation speed is over 35,000 times faster than your standard everyday computer. And it can solve in 1 minute what an average computer can solve in 100 years.
Ordinary computer uses classic bits and on average, a standard computer uses 4,000 bits. But a quantum one uses qubits. 1 qubit is equivalent to 10,000 computers and we are using a 4 qubit computer. So if we compare our 4 qubit computer, in theory it is faster than 40,000 computers.
We use this computer to exploit mainly the finance field, such as portfolio optimization and market arbitrage and so on.
Interviewer: So how does it work? And how exactly have you turned the quantum computer’s speed to your advantage?
Dr. Moche: Actually, we are operating by using a Monte Carlo simulation from the perspective of a hypothetical trader, and we want to know if we can have specific results after a certain period of time.
For example, we want to run thousands upon thousands of test simulations, over and over again, and to see what’s the final outcome of the test will be. Using a standard home or work computer would take us days, weeks, even months to find out the results. But now thanks to quantum, we have the edge over our competitors and can find out the results in a matter of seconds or minutes.
Interviewer: Ok. And can you elaborate more on how you turn this speed and your test results into an actual profitable, money making system?
Dr. Moche: Ok Jasmine, just allow me to show you one picture please? So, with our F1 algorithm for instance, we extract huge amounts of data, such as financial news, price patterns, fundamental news, cyclical events, and we combine all this data and run it through a Monte Carlo simulation, or stochastic simulation, and then our quantum computer will process this information over 35,000 times faster than your average device.
Then we calculate the highest probability for the next market move. It also has the ability to scan back, and see how the markets moved in the past and look for patterns to best predict what the market will do at a specific time. For example during a countries PMI Data release, or the American Non-farm Payroll.
Interviewer: Wow, so it literally can look back in time at the markets and see how they have moved? Very fascinating!
Dr. Moche: Yes it is. It doesn’t just scan one trading instrument. It scan all trading instruments at the same time, both forwards and backwards. By the way, it will also provide different strategies to generate profits depending on your risk margins. For example, Volume Spread Analysis, or even Reverse Trading.
Interviewer: Ok, so if a Monte Carlo trader begins with $10,000 in their account. After one year of investing and placing monthly trades, how much would they expect their account to be worth?
Dr. Moche: Well, it is not as simple as giving out an exact figure, however we are using it for our PAMM System and we are confident that it will generate returns of around 8 to 15% a month.
Interviewer: Ok, so how often would you recommend trading using F1 to get the best results? Is it something that can run 24/7, 365 days a year?
Dr. Moche: The quantum computer will require maintenance work on it, from time to time, but don’t worry this will have no direct impact on any of our customers using the PAMM system, but for the moment, we are just running it for a standard trading week. That’s from Monday to Friday. As the Monte Carlo simulation, this has shown after many thousands of simulations, it’s safer to trade smaller and often.
Please Jasmine, let me show you a picture. Ok, we start with an account, $10,000. After 12 months of use, we have few lines under 10,000 and after 24 months, we have even less lines.
So if we store all this image in a simple table, after 6 months we have 80% profitable accounts, and then after 2 years, there are around 86% that are now profitable. And from top and bottom, traders will have more profits after 24 months of trading.
Interviewer: Ok, and is this available for independent traders too? I mean, is it possible to link into your F1 algorithm and make it available for all traders?
Dr. Moche: Unfortunately, it’s not just a simple app that you download from an app store. We provide a whole solution. It has also cost a lot of time and money to get where we are today, not to mention we are currently working only with FVP Trade.
Interviewer: Ok. And are there any other advantages to having a quantum computing system at a brokerage such as FVP Trade? What else is it capable of doing? And also is it, is it secure?
Dr. Moche: Of course Jasmine, This level of technology requires extremely high levels of security, using blockchain encryption to fight against malwares and keep the system stable, while also fighting against the present threats of cyber-security, like hackers and so on.
Quantum computers have the power to be used in a wide variety of industries. Google currently uses quantum to power self drive cars, for satellite navigation, even predicting the weather far in advance. Now there is also use in biotechnology too! And to answer to your question, for the moment we are just using it for finance, and we are running at 4 qubits at the moment.
Interviewer: Ok, wow. And what are Qfinitys plans for the next few years? Where do you think the limit is for quantum computing? Are we all going to be driving quantum powered cars any time soon?
Dr. Moche: Our main target by 2025 is to be running at 8 qubits. This will open up a few new doors for us. I won’t give away too much information yet, but quantum is only just starting to be recognized for its potential and capabilities. It takes my team and myself a lot of hard work just to get here. With huge companies like Google or IBM, we are already beginning to see just exactly what it’s capable of. IBM are already starting to offer a taste of quantum to everyday computer users, by plugging into their system. It’s knowing what you’re actually doing when you’re into the system, and that’s the hard part.
Interviewer: Ok, well great. Thank you so much for your time today Dr. Moche. I’ve gained a lot of insight and surprisingly it wasn’t too difficult to understand. We realise you’re a very busy man but, one last thing, where can we find more information about your company?
Dr. Moche: You can find all information you need at Qfinitylabs.com. And by the way, my book: Applications of Quantum Computing in Finance, has just been released. You can find it on Amazon. So thank you very much, and have a nice day Jasmine.
Interviewer: Thank you. You as well.